Posted on 11/16/2022 8:27:15 AM PST by EBH
It seems the strong consumer demand born out of a stay-at-home stimulus-laden pandemic environment is continuing into the end of 2022, and probably 2023 as Federal Reserve data issued Tuesday shows a sharp rise in household debt during the third quarter.
What happened: Due to significant increases in credit card usage and mortgage balances, American households increased their debt at the fastest rate in 15 years.
Total debt increased by $351 billion for the period of July to September, the largest nominal quarterly increase in 2007, suggesting that the "excess savings" the Fed believed Americans possess has already been spent.
With this increase, the total household debt in the U.S. has reached a record high of $16.5 trillion, an increase of 2.2% from the previous quarter and up 8.3% from one year prior.
Mortgage balances, which rose $1 trillion from a year ago to $11.7 trillion, and credit card debt, which increased to $930 billion, were the two biggest contributors to that debt load.
(Excerpt) Read more at msn.com ...
Credit card debt through the roof....
people were simply spending the money the government sent them during covid!
DUH!!
people are stupid and will spend more when you give them more!
duh, this is America. Whatever made them think that?
No problemo - they’ll just cash out some of that sweet home equity.
right in line with inflation. some might conclude it didn't increase at all /sarc
and then there’s what they lost in the market...especially those that were on the verge of retiring.
Probably a rounding error. I mean an extra 87,000 financial experts and they missed the mark? Or, mis/dis-information?
Where did the feds ever get the idea that Americans have any savings? From general observation and conversation with people I know, I think we are all one paycheck from homeless. A sad and dire condition almost solely due to President Biden.
They’re really not looking hard at credit card balances and mortgage balances. They are looking HARD at your 401Ks, retirement accounts and other retirement investment funds you have on which they can either assess a one-time (ha!) ‘recovery fee’ or just outright take and call it a contribution to national retirement security irrespective of Social Security which they will soon declare untenable.
They floated the concept under Clinton with that administration witch Teresa Ghilarducci ...
Is this the same wealth they thought we having been hiding and are hiring 83000 IRS agents to go after?
Its almost as if all the elites think everyone is a rich and unburdened by how much things cost as they are.
humor
What a coincidence!
Our local yokels were bloviating about sales tax collection increases until someone pointed out to them that they did not even match inflation. Oops.
heh...
just like in 2008, 1987, ...
Between taxes, rapid inflation and rising credit card debt how did they ever come to this conclusion? I don’t know what’s scarier that Fed officials really believe this or they think we’re stupid enough to fall for this excuse.
A guy that worked for me said the biggest debt mistake he ever made was thinking he had lots of money because he got a bonus and had some time off. He spent the bonus, went out and bought an expensive motorcycle with the balance on credit. Doh!
I am told that people are also taking out credit on the bais of the student loan payment holiday and betting on the come that the debt will be forgiven. Oops again. Oh well, their hero joe will come up with some other scam to extract their vote. Well, not actually joe but his handlers whomever that faceless crowd is.
Buy gold, silver, and ammo. And when the Democrats show up to take it all away give them the ammo first.
If you don’t have enough money to live off the interest on it without ever touching the principle, you don’t have enough.
This is what happens when you are counting on other people's money,
and then it runs out.
Another form of control over the population.
IT seems that the government's position is to tax you into submission,
regardless of your ability to pay.
It seems like a return to the Feudal system, where there were kings, princes, .. and peons (or pee ons).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.