Quote:
Originally Posted by AmeliaG
The reason membership site rebilling fell off a cliff in 2008 was all the banks being induced by leverage regulation to turn off tons of credit cards of perfectly good payers, just so the banks could get their bailouts and continued mortgage guarantees.
The increase in debt now is what economic recovery looks like for Main Street and the middle class in America.
Different financial analysts have very different views of ideal markers because different groups either do or do not wish to expand the prosperity of the middle class.
A college-educated employed homeowner, driving past a homeless encampment, in a late model car, will have a debt-heavy much lower net worth than the folks living in tents, under an overpass, but which of those options should be our goal in America?
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I remember rebilling falling off because credit cards were maxed out.
All the analysts I've seen on CNBC , Fox, etc say the recession is coming, likely this year.
When they say the recession is coming they point to the red flags that I've been making threads about.
When you combine the red flags I've listed with facts about the consumer economic situation ( like 58% of Americans have less than $1,000 in savings, 37% have no savings and live paycheck to paycheck, the average credit card balance for those who don't pay their credit card balance off every month is $5,700 ) then it's clear that the economists are right we're teatering on the edge.
Remember, retail sales in December were the lowest since the financial crisis 9 years ago.
If people with disposable income weren't feeling the pinch they would be spending it at Christmas and the market would be meeting forecast not plunging below expectations.
Retail sales sink 1.2% in December in the worst plunge in nine years