When the consumer breaks, so does the economy. From Michael Snyder at endoftheamericandream.com:
When the U.S. consumer is in healthy financial shape, the outlook for the U.S. economy is generally positive. But just like we witnessed prior to the Great Recession of 2008 and 2009, when the U.S. consumer is not in healthy financial shape, bad things tend to happen. Unfortunately, the numbers are telling us that current conditions are eerily similar to what we experienced during the run up to the Great Recession. Households don’t have enough money coming in, debt levels are soaring, delinquency rates are rising, and tens of millions of us are just barely scraping by from month to month. The following are 9 signs that the U.S. consumer is about to break…
#1 After adjusting for inflation and taxes, household income in the United States has fallen 9.1 percent since April 2020…
On the inflation issue, household income adjusted for inflation and taxes is running some 9.1% below where it was in April 2020, putting additional pressure on consumers, according to SMB Nikko Securities.
#2 Credit card debt has surpassed the one trillion dollar mark for the first time ever as struggling American households increasingly turn to credit cards to get by from month to month…
Americans increasingly turned to their credit cards to make ends meet heading into the summer, sending aggregate balances over $1 trillion for the first time ever, the New York Federal Reserve reported Tuesday.
Total credit card indebtedness rose by $45 billion in the April-through-June period, an increase of more than 4%. That took the total amount owed to $1.03 trillion, the highest gross value in Fed data going back to 2003.
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