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

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Jeffrey Gundlach: Buckle up!

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.

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