Posted on 11/15/2022 10:35:33 AM PST by Right Wing Vegan
Americans continued to take on debt during the fourth quarter amid a surge in credit card borrowing, even as they backed away from new mortgages in a rapidly rising interest rate environment, the Federal Reserve Bank of New York said Tuesday.
The bank said in its quarterly report on household debt and credit that total borrowing during the third quarter increased by $351 billion from the prior quarter to $16.51 trillion. Overall borrowing is $2.36 trillion higher than the level seen at the end of 2019, before the coronavirus pandemic struck and scrambled the economy.
“Credit card, mortgage, and auto loan balances continued to increase in the third quarter of 2022 reflecting a combination of robust consumer demand and higher prices,” said Donghoon Lee, a New York Fed research advisor, in a press release. "However, new mortgage originations have slowed to pre-pandemic levels amid rising interest rates.”
The researchers flagged high car prices, more expensive homes and elevated gasoline prices as all having helped push up how much Americans have been borrowing.
(Excerpt) Read more at money.usnews.com ...
Increase in credit card debt does not necessarily mean “robust demand” it means people are using credit to pay for their food and utilities which they used to pay with cash or check.
The tipping point is coming. The crash should be epic. I better get in touch with William Devane.
It's going to be real bad. But whatever, people voted for it so I guess that's what they wanted.
And the stock markets are acting like they believe inflation has cooled and is under control. So much manipulation.
I’m liking that inflation, while still high and rising, has slowed its rate of rise this early in the tightening. Can’t predict if that continues to improve but the initial effect of the tightening is encouraging. We have to realize that only the first rate-rise has worked its way into the economy at this point due to the time lag of rate-rise effect.
It’s not manipulation, it’s just people placing their personal bets with their own money. I think they are too early but they are free to invest as they please. The vast majority of investors are too late to buy back in after downturnds, including me in the past. This time I mostly stayed in and just rebalanced.
Debt is increasing because interest rates are rising. Jobs are still plentiful. In a short while people will reduce their debt because of the high interest. Its just happening so fast that people need time to adjust.
Or maybe people didn’t vote for it? Elections have consequences even stolen ones.
NY Fed: Consumer Debt Rises in Third Quarter on Strong Demand, High Inflation!
That Consumer Debt was/is probably due this month.
How many democrats have enough funds to cover/pay for those purchases aka Consumer Debt?
Those planning to use their free student loans to pay for their purchases are finding out how democrats $crew their voters.
This is probably part of the reality where Amazon is cutting payrolls and not moving into new warehouses.
Somewhere along with these issues, we just got a first class mailing noting that, we might be eligible for a basically free internet up to $29.95 /month if our monthly income is at or below a certain amount via the Affordable Connectivity
Program, (ACP).
So you can be unemployed and have a free internet up to $30/month.
NY Fed: Consumer Debt Rises in Third Quarter on Strong Demand, High InflationI'll rephrase for accuracy:
They got people to sell stocks and go into cash. Cash which is losing 15-20%/year in value.
Now that the stocks are cheaper the smart money is going back in.
What ever the issue is with stocks over time they will go up but once cash loses value it never regains it.
The smart money people understand this.
And the stock markets are acting like they believe inflation has cooled and is under control. So much manipulation.Can we stop pretending "the stock markets" are some unknown aliens?
The stock markets are fueled with your/my tax dollars. You and I are the only ones who will lose in the end.
Your President said inflation will come under control when tax credits for solar panels kick in next year.
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