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 ...
Gold and silver will be taken by those with AMMO!
So, the nations “accountants” are complete screw ups and have NO idea of how to keep track of money?
Imagine that…
Milk the cow and collect the eggs is what I tell people who are foolish enough to ask my advice.
The Fed doesn’t know the difference between savings and debt.
How encouraging.
It’s sad that it will take real hardship to get the attention of Americans. I really do feel bad for those that are caught up in this, with no culpability.
As for Democrats, I will take delight in their pain.
What the heck are “excess” savings?
Ping to #11
She’s ba-ack!
Well, I did last week...and then FTX happened.
Easy come, easy go.
According to the Democrats, all savings are excess.
At 8%.
For the past year, the WSJ and other financial sites have had article after article talking about the great amount of savings being held by Americans. I’ve always thought was bullcrap. There is no “stimulus” savings. That money was spent almost immediately when it hit peoples’ banking accounts. I’ve commented that I’ve never before seen the same money being spent repeatedly, while at the same time being saved, as that stimulus money has been.
IOW, pretty much no one has enough.
When they excluded the deep state’s balances, the money available dropped to zero.
“I am told that people are also taking out credit on the basis of the student loan payment holiday and betting on the come that the debt will be forgiven.”
Too bad they never learned about the Constitution during their “education”—they just figured Presidents have unlimited powers to just give away money...
At 7% interest. And home values are decreasing.
Excess savings? What is that?
at a reasonable 5% rate (currently CD’s are at over 4%) you would make $50,000 a year in interest per million in savings.
2 million = $100,000 interest
4 million = $200,000 interest
I think many could save up 2-4 million
I have big CD’s. While a 4% is currently available, it has been for only a short time. And peoples’ maturity dates may not line up....
Yes, some have 2-4 million in ready cash, I suppose ....
many older people may have that much in their large family home if they were to sell it.
then they could rent or travel for the rest of their lives on the interest.
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