probably bought avocado toast makers*SCREAM*Credit card spending*SCREAM*
People are stupid on average:
Credit card balances spiked by $154 billion year over year, notching the largest increase since 1999, the New York Fed found.
- Collectively, Americans now owe $1.08 trillion on their credit cards, according to a report from the Federal Reserve Bank of New York.
- Steadily, persistently higher prices have caused consumers to spend down their savings and increasingly turn to credit cards to make ends meet.
- At the same time, credit cards are one of the most expensive ways to borrow money.
“Credit card balances experienced a large jump in the third quarter, consistent with strong consumer spending and real GDP growth,” said Donghoon Lee, the New York Fed’s economic research advisor.
View attachment 89376
Up until recently, most Americans benefited from a few government-supplied safety nets, most notably the large injection of stimulus money, which left many households sitting on a stockpile of cash that enabled some cardholders to keep their credit card balances in check.
Total credit card debt is a meaningless number.People are stupid on average:
Credit card balances spiked by $154 billion year over year, notching the largest increase since 1999, the New York Fed found.
- Collectively, Americans now owe $1.08 trillion on their credit cards, according to a report from the Federal Reserve Bank of New York.
- Steadily, persistently higher prices have caused consumers to spend down their savings and increasingly turn to credit cards to make ends meet.
- At the same time, credit cards are one of the most expensive ways to borrow money.
“Credit card balances experienced a large jump in the third quarter, consistent with strong consumer spending and real GDP growth,” said Donghoon Lee, the New York Fed’s economic research advisor.
View attachment 89376
Total credit card debt is a meaningless number.
Wow. Did not know that.Right. It also includes the balances of people that pay it all off every month.
So a normal Black Friday then.. You do realize that our economy is fueled by credit right?*SCREAM*Credit card spending*SCREAM*
If you get your news and info from Fox, Biden caused the economy to crater. People are saying otherwise.
Credit card payments as a percent of income are well within the normal range it’s been for at least as far back as records go.People are stupid on average:
Credit card balances spiked by $154 billion year over year, notching the largest increase since 1999, the New York Fed found.
- Collectively, Americans now owe $1.08 trillion on their credit cards, according to a report from the Federal Reserve Bank of New York.
- Steadily, persistently higher prices have caused consumers to spend down their savings and increasingly turn to credit cards to make ends meet.
- At the same time, credit cards are one of the most expensive ways to borrow money.
“Credit card balances experienced a large jump in the third quarter, consistent with strong consumer spending and real GDP growth,” said Donghoon Lee, the New York Fed’s economic research advisor.
View attachment 89376
This is a better measure, but still not perfect.Credit card payments as a percent of income are well within the normal range it’s been for at least as far back as records go.
Since you so interested in bursting the good economy bubble I’ll test what you know.Well I have never carried any credit balances with the exception of my house.
From the linked article:
Credit card delinquency rates also rose across the board, according to the New York Fed, but especially among millennials, or borrowers between the ages of 30 and 39, who are burdened by high levels of student loan debt.
With most people feeling strained by higher prices — particularly for food, gas and housing — more cardholders are carrying debt from month to month or falling behind on payments, and a greater percentage of balances are going more than 180 days delinquent, according to a separate report from the Consumer Financial Protection Bureau.
Nearly one-tenth of credit card users find themselves in “persistent debt” where they are charged more in interest and fees each year than they pay toward the principal — a pattern that is increasingly difficult to break, the consumer watchdog said.
“It’s a big deal,” said Ted Rossman, senior industry analyst at Bankrate. “Your credit card is probably your highest cost debt by a wide margin.”
Don't sound real good to me... "Credit card delinquency rates also rose across the board, according to the New York Fed"
1 Trillion divided by the population of the USA 340 million (rounded up) is a debt of $2,941.17 for every man, woman and child in the USA.
Bank investors would miss out on easy profits, the money supply would shrink, the Fed would response by lowering rates and increasing the money supply to balance, savers would get screwed (again) , consumer spending would drop, inflation would, hmm, not much either way, employment might drop a hair.Since you so interested in bursting the good economy bubble I’ll test what you know.
What would happen to the economy if everyone suddenly paid off all their credit?
While delinquency rates have risen recently they are also well within normal historical percentages. (Really, lower than normal)Well I have never carried any credit balances with the exception of my house.
From the linked article:
Credit card delinquency rates also rose across the board, according to the New York Fed, but especially among millennials, or borrowers between the ages of 30 and 39, who are burdened by high levels of student loan debt.
With most people feeling strained by higher prices — particularly for food, gas and housing — more cardholders are carrying debt from month to month or falling behind on payments, and a greater percentage of balances are going more than 180 days delinquent, according to a separate report from the Consumer Financial Protection Bureau.
Nearly one-tenth of credit card users find themselves in “persistent debt” where they are charged more in interest and fees each year than they pay toward the principal — a pattern that is increasingly difficult to break, the consumer watchdog said.
“It’s a big deal,” said Ted Rossman, senior industry analyst at Bankrate. “Your credit card is probably your highest cost debt by a wide margin.”
Don't sound real good to me... "Credit card delinquency rates also rose across the board, according to the New York Fed"
1 Trillion divided by the population of the USA 340 million (rounded up) is a debt of $2,941.17 for every man, woman and child in the USA.
Yup, if you are paying cash when you could be earning cash back with a CC that's a missed opportunity.People are stupid on average:
...
Since you so interested in bursting the good economy bubble I’ll test what you know.
It would destory our economy, as our economy is built and sustained on credit, the results would most likely be worse than the great derpession, probably much, much worse.Bank investors would miss out on easy profits, the money supply would shrink, the Fed would response by lowering rates and increasing the money supply to balance, savers would get screwed (again) , consumer spending would drop, inflation would, hmm, not much either way, employment might drop a hair.
Reality is that the people who can pay off their cards, do pay off their cards. People who don't, mostly can't so the question is moot.
Except this "housing bubble" is entirely driven by demand and lack of supply in the places people want to live, so it is extremely different than the 2000s housing bubble.I think there is value in exploring if we have crossed over into irrational exuberance territory. I think we are in a bubble. Stocks have soared. Unemployment is very low. Housing prices have skyrocketed far more quickly than wages. This reminds me a lot of the 2000s housing bubble.
I'm not exactly cheering for an economic bubble burst, but it would be good for young professionals if housing prices were to drop. I'd like to see bad debt cleared out of the system...student loans, credit card debt, auto loans, etc... As a homeowner of course I'd love to see prices go to infinity. But as a fellow human being, this situation is not good at all for anyone except those who already own a home and/or those who are very high-income earners.
Yes, the unfortunate thing is this is almost certainly NOT a housing bubble - this is just years and years of banning housing construction coming home to roost. I almost wish it were a housing bubble as that's probably easier to dig out of than to build 7-10 million new houses.Except this "housing bubble" is entirely driven by demand and lack of supply in the places people want to live, so it is extremely different than the 2000s housing bubble.