Consumers’ struggle in high-debt, high-interest environment raises risk of imminent sharp economic downturn

One second-order impact of the current affordability crisis?

More auto loan fraud — as people need transportation but can't get approved for financing.

Just recorded a mega episode on this growing $8.1B issue:t.co/GJ17UURkWO

— CarDealershipGuy (@GuyDealership) October 4, 2023

Millennial are feeling the pain of higher rates more than baby boomers, per BI: pic.twitter.com/EOFARWL5ue

— unusual_whales (@unusual_whales) October 4, 2023

"Everyone is locked in 3% mortgage except millennials," Bank of America, $BAC, has said.

— unusual_whales (@unusual_whales) October 4, 2023

This has ONLY happened 3 times since 1947

Savings as a % of national income has entered contraction territory

The last 2 times it happened was during the:

– Financial Crisis
– Pandemic

The consumer keeps getting weaker in a high interest rate – high debt environment

When the… pic.twitter.com/DVI40fB9lp

— Game of Trades (@GameofTrades_) October 4, 2023

U.S. Consumer Confidence.

Not bullish at all. pic.twitter.com/dZ3DQ4NVAb

— Daniel Lacalle (@dlacalle_IA) October 3, 2023

Jeffrey Gundlach: Buckle up!

The US Treasury yield curve is de-inverting very rapidly. Was at -108 bp a few months ago. Now at -35 bp. Should put everyone on recession warning, not just recession watch. If the unemployment rate ticks up just a couple of tenths it will be recession alert. Buckle up.

— Jeffrey Gundlach (@TruthGundlach) October 4, 2023

Americans Drowning in Credit Card Debt Amid Bidenomics

Amid the era of “Bidenomics,” college students are grappling with surging credit card debt as interest rates soar. Despite record-high credit card debt signifying financial strain, certain Republicans, like Senator Josh Hawley, are suggesting solutions reminiscent of Biden’s economic policies. Hawley’s proposed government rate regulation might deny some Americans credit access altogether or provide credit under unfavorable terms. Instead of government-led fixes, a genuine solution requires reduced federal spending, improving credit access, and beneficial tax policies.

Growth Slows, Prices Re-Accelerate: Services Surveys Confirm Stagflation

Services PMI has dropped to its lowest since January, barely indicating growth. Costs have surged, causing service providers to increase prices rapidly. Consumer services demand, including travel and tourism, has diminished, and financial services are in a slump. As the year ends, indicators suggest slowing GDP growth coupled with rising prices, confirming stagflation.