Stimulus bucks are gone.
Retail data has been surprisingly strong, but the $1T in consumer credit card debt tells a story.
Americans are spending every $ to get by and putting the rest on credit.
Interesting times ahead.
— Real Estate Rex 🏢 (@real_estate_rex) September 4, 2023
Noodle this: The bulk of residual savings was in the hands of the well-off. It’s gone
The top 2 quintiles, who earn >=$100k=60% US spending
Spending=70% US GDP
Think about that
“Using Fed’s methodology, conclusion: Consumers are almost out of pandemic savings.”@apolloglobal pic.twitter.com/gSj6uIdSWP
— Danielle DiMartino Booth (@DiMartinoBooth) September 4, 2023
Total household debt in the US is at a record-high of $17.06 trillion: pic.twitter.com/RXobqRcqov
— unusual_whales (@unusual_whales) September 4, 2023
Car loan debt in the U.S. is at a record high of $1.56 trillion.
— unusual_whales (@unusual_whales) September 4, 2023
Biden’s America: Majority Living Paycheck to Paycheck, Even Six-Figure Earners Overwhelmed
A new report said a majority of Americans are just squeaking by as a mountain of debt grows taller and taller.
As of July, 61 percent of adults in a LendingClub survey said they were living paycheck to paycheck, according to CNBC.
The study found that 78 percent of consumers who earn under $50,000 a year and 65 percent of those who make between $50,000 and $100,000 annually were living paycheck to paycheck in July.
Forty-four percent of those earning more than $100,000 a year were living check to check, the study said.
“Consumers are undoubtedly continuing to feel the impact of inflation and rising interest rates,” said Chris Fred, the head of TD Bank’s credit cards and unsecured lending.
As The BRICS Countries Stockpile Gold And Americans Scramble to Protect Themselves, A Faith-Based Company Shows Them How
Credit card debt reached $1.03 trillion in the second quarter of the year, according to The Week. Credit card delinquencies hit 7.2 percent.
“The increase in delinquencies and defaults is symptomatic of the tough decisions that these households are having to make right now — whether to pay their credit card bills, their rent or buy groceries,” said Mark Zandi, Moody’s Analytics chief economist, according to The Washington Post.
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