[Giantone]

Originally Posted by Chico23231

Here’s the problem we are facing short term in the economy now that the fed and the administration mishandled inflation and their energy policy:

American debt:

Last month, total consumer debt, which includes debt from credit cards, student loans and auto loans, went up $38 billion. In total, Americans now have $4.57 trillion in consumer debt, an all-time record.

The $38 billion increase was a 10.1% increase from March, so the situation is escalating quickly. When mortgage debt is added into the equation, American household debt sits at $15.8 trillion, which is also an all-time high.

Bottom Line: Americans have never been in more debt than they are now.

According to the Fed, Americans opened up 229 million new credit card accounts last quarter, which is higher than pre-pandemic levels.

Now the fed is raising interest rates fast as fuck:

And… because the Fed is raising interest rates in an attempt to slow down inflation, carrying a balance on a card month to month is going to start costing even more. For example, the average annual rate or APR on most credit cards is around 16% right now, but it’s expected to be 18% or 19% by the end of this year. That would be the highest rate in history.

As a result, Americans are saving less money each month. In April for example, the U.S. Savings rate fell to only 4.4%, the lowest mark since 2008.


Quite the problem

Amazing how you didn't care about this while he who shall remain nameless was in Office.