Posted on 08/02/2023 12:10:09 PM PDT by RomanSoldier19
Americans' cash reserves have experienced a boom bust cycle in the last few years, and the latest data spells bad news.
Americans now hold a record level of credit card debt, according to recent data from the Federal Reserve. It comes as they see their pandemic savings and cushions depleted, and as the labor market cools from its red-hot post-vaccine highs.
It shows just how much direct stimulus spending bolstered the economy and created a group of workers accustomed to support that likely won't come back — and it may spell even further economic doom as student loan bills get piled on.
Credit card debt saw a big dip after the pandemic's onset and stayed low in the post-vaccine months, fueled by stimulus payments and enhanced employment benefits. At the same time, the personal savings rate soared, with American households able to save up $2.3 trillion from the first quarter of 2020 through the third quarter of 2021, according to a Federal Reserve analysis.
(Excerpt) Read more at msn.com ...
Apparently, the government thinks this is all our fault.
Government: stay in your homes, buy stuff on the internet.
...later....
Government: shame on you for buying stuff on the internet.
Wait for the incoming destruction of CRE.
Bidenflation
Thanks to the lockdown, I lost my freelance work, and had to rely on credit cards. I had been doing so well beforehand, and I felt like the carpet got pulled out from under me.
Luckily, I retained my regular job. But I realized how much I had depended on that freelance for the extra income. It is coming back, but recouping my losses will take a while.
.
I’ve been watching reruns of MWC on Pluto lately and I had the first real laughs in ages.
“Bidenflation”
Exactly. Now it is the Pandemic’s fault. This BS is just too hilarious.
Of course, the government caused inflation has nothing to do with it, right?
It’s always someone else’s fault.
The ridiculous thing is, people spent a lot of money doing big remodel and construction projects. They are done now and that kind of spending is over.
“fueled by stimulus payments and enhanced employment benefits”
Don’t forget how many kids moved in with mom and dad, suspension of student loan payments and eviction moratorium.
A round in cardiac and a few months later IICU for three weeks last year plus ambulance runs really put me in the red.
After final surgery I had 4 major bills. Said and done even with insurance about 26k. Almost dying a couple of times isn’t cheap. Plus I had a couple of major things I was too sick and weak to do so I had pay someone else.
Two are retired and I hope to close number three this week on payday,
The fourth will take a while. Maybe a year barring any financial grenades and super strict budgeting.
Who here got “used” to spending a lot of money during the pandemic? I’d be interested in hearing what you spent that money on. Did you spend just to be spending? Did you do household projects that had been on due to lack of time?
We actually spent less since I was on WFH for the three months prior to my retirement. I wasn’t stopping at the grocery store on my way home every day and wasn’t using as much gas for my commute so we were saving money. The eventual change to spending more was due to inflation and not to our making more purchases.
These people were just “so happy” for a couple years, grifting all this unearned money, while they never lost a day of work or wages.
Many even received raises.
They constantly asked “How much money did you get?” with their doey eyed expressions.
“Nothing and I’d send it back anyway. I didn’t earn” I’d say.
“You better be putting that money away for a very rainy day. A day that will border on biblical raising of interest rates and run away inflation like you have never experienced” I warned.
Nope. They spent away on vacations, upgrading shoes, new computer and phones, etc, etc, etc.
I told them this will go on for a years if you are in debt, you are screwed because your paycheck will not keep up with inflation.
Here we are and only two years into what I thought and think is going to take 10 years to resolve....
suckers...
I was terminated from my job for not taking the clot shot after they had denied my religious exemption.
Meh! We were racked before the scamdemic. 🥴
the cost of living has skyrocketed in the last year or two
it is hurting many many people terribly
the prices of food and rent are astronomical
I saw this coming a mile away and have been living low for months pouring every cent into paying off debt.
Yep...economy roaring, job market on fire, wages thru the roof...everything is fine. No recession...all good.
This may or may not be true, but similar articles have been written on this very topic for at least 6 months now. People seem very moving along.
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