Putting on my "Black Friday business cap"...
Yeah, well, it’s interesting, because now the US is north of $1,000,000,000,000 U.S. credit card debt (that's 1 trillion). We’re approaching $5 trillion in overall consumer debt here in the United States. And that’s made up of auto, obviously mortgages, credit cards, student loans. It's a significant number. And that’s happening under, again, a rising interest rate environment and you have to service that debt.
What I’ve said before...and what I believe, as long as people have jobs, as long as they feel good about things, they will spend. And one of the main things they look to is the stock market, which a year earlier has sold off, but not in a catastrophic way. People will spend money. It's just the way it’s always been. It doesn’t mean they should be spending money, but they WILL spend money.
Bottom line: Never underestimate the U.S. consumers WANT to spend. It doesn’t mean they should be spending.
The consumer is becoming increasingly strained, savings rate going down, meanwhile consumer credit, is going up dramatically.
(This isn't going to end well)
Edited 1 time(s). Last edit at 11/26/2022 10:08AM by maverick1.
