Another good read. It also explains why I can’t seem to put any money into savings, other than my 15% to my 401k, even though I’m making more money than I ever have previously. Let’s face it, our grocery bills are literally 3 times what they were in 2020, the electric bill is up at least 30% and fuel for the car is up at least 50%. Oh, and insurance is up about 20% as well. A lousy half point cut from the Fed will not stimulate much of anything, other than another increase in these prices. Allowing a super-size, corrupt banking cartel to set interest rates while at the same time selectively deciding what items are allowed into inflation calculations is problematic. I think Alex Jones is right, the Globalists are getting more desperate as their system is heading for disaster.
Why would the Fed cut rates now? Could it have anything to do with the coming election? Maybe to burnish the credentials of the current regime? Of course, such a thing would never actually happen given the very principled head of the Federal Reserve.
Of course it has to do with the coming election. Kamala needs all the help she can get. But the Fed didn’t have to push through with 50 points, and the fact that they did clearly shows the economy is in trouble. 25 points wouldn’t have been enough "help," given the way things are, I guess.
Lau, I too think we're heading for recession, but not because of consumer debt or low savings. The reason credit card debt is at an all time high is related to the lack of savings, and both are related to inflation. It makes no sense to have a savings account when interest rates are low (They're a little better now, but the savings statistics are lagging) so it's perfectly reasonable to put every purchase on a credit card rather than paying cash. With higher prices, naturally credit card balances are higher too. What we have to watch closely is how many people are not paying the balances off monthly and how many are falling further behind. Otherwise it's not a problem.
Thanks, Al. I respectfully disagree. It’s a problem because credit card delinquencies have more than doubled since 2021. Also, high credit card balances lead to higher interest payments, which eats into disposable income. Less disposable income, means less saving. It’s a vicious cycle where debt feeds more debt, weakening America’s financial resilience and driving savings rates to historic lows (which we can clearly see is happening). Appreciate you taking the time to read!
Well, thanks for the statistic on the delinquencies, which are an important metric. But high credit card balances are meaningless if we pay them off at the end of each month - that’s why delinquencies, and their size, are the thing to watch.
Another good read. It also explains why I can’t seem to put any money into savings, other than my 15% to my 401k, even though I’m making more money than I ever have previously. Let’s face it, our grocery bills are literally 3 times what they were in 2020, the electric bill is up at least 30% and fuel for the car is up at least 50%. Oh, and insurance is up about 20% as well. A lousy half point cut from the Fed will not stimulate much of anything, other than another increase in these prices. Allowing a super-size, corrupt banking cartel to set interest rates while at the same time selectively deciding what items are allowed into inflation calculations is problematic. I think Alex Jones is right, the Globalists are getting more desperate as their system is heading for disaster.
<<It’s like treating alcoholism with happy hour specials>>
I chuckled at this. Spot on!
excellent revue
are the over-extended waiting for uncle sam to bail them out
send a message to "boobus americanus" to grow up
Why would the Fed cut rates now? Could it have anything to do with the coming election? Maybe to burnish the credentials of the current regime? Of course, such a thing would never actually happen given the very principled head of the Federal Reserve.
Of course it has to do with the coming election. Kamala needs all the help she can get. But the Fed didn’t have to push through with 50 points, and the fact that they did clearly shows the economy is in trouble. 25 points wouldn’t have been enough "help," given the way things are, I guess.
Lau, I too think we're heading for recession, but not because of consumer debt or low savings. The reason credit card debt is at an all time high is related to the lack of savings, and both are related to inflation. It makes no sense to have a savings account when interest rates are low (They're a little better now, but the savings statistics are lagging) so it's perfectly reasonable to put every purchase on a credit card rather than paying cash. With higher prices, naturally credit card balances are higher too. What we have to watch closely is how many people are not paying the balances off monthly and how many are falling further behind. Otherwise it's not a problem.
Thanks, Al. I respectfully disagree. It’s a problem because credit card delinquencies have more than doubled since 2021. Also, high credit card balances lead to higher interest payments, which eats into disposable income. Less disposable income, means less saving. It’s a vicious cycle where debt feeds more debt, weakening America’s financial resilience and driving savings rates to historic lows (which we can clearly see is happening). Appreciate you taking the time to read!
Well, thanks for the statistic on the delinquencies, which are an important metric. But high credit card balances are meaningless if we pay them off at the end of each month - that’s why delinquencies, and their size, are the thing to watch.