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Americans got used to spending big during the pandemic. Now they're running out of money and racking up record credit card debt.
business insider via msn ^ | Jul 26 2023 | Juliana Kaplan,Noah Sheidlower)

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 ...


TOPICS: News/Current Events
KEYWORDS: debt
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To: Obadiah

Bed Bath & Beyond went bankrupt. So I guess people are buying less consumer goods now.


21 posted on 08/02/2023 1:15:10 PM PDT by MinorityRepublican
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To: Obadiah

How in the hell could Americans have been spending big, the government gave out 1800.00 to a single person people did NOT have jobs, businesses were closed down WHAT THE HELL are these people talking about??


22 posted on 08/02/2023 1:15:59 PM PDT by Trump Girl Kit Cat (Yosemite Sam raising hell)
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To: McGavin999

I sold my home on the beach, paid off ALL debt, moved to Palm Desert paid cash for a condo I AM DEBT FREE and it is AWSOME!! Cut ALL the cards up and if I don’t have the cash I don’t buy it!! I took a part time job at Home Depot to supplement my retirement but I am STILL struggling EVERYTHING is so damned expensive now!! They don’t include groceries in the inflation numbers and THAT IS RIDICULOUS!!


23 posted on 08/02/2023 1:21:33 PM PDT by Trump Girl Kit Cat (Yosemite Sam raising hell)
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To: MinorityRepublican

I boycotted them when they boycotted MyPillow.

sux to be BB&B!


24 posted on 08/02/2023 1:35:18 PM PDT by sauropod (Sun Tzu: “The supreme art of war is to subdue the enemy without fighting”)
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To: sauropod

Bad timing for them to do that, obviously. But Macy’s is taking a beating too. Americans are too broke to shop there.


25 posted on 08/02/2023 1:39:24 PM PDT by MinorityRepublican
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To: ClearCase_guy
Government example-—unsustainable debt

Citizens follow-—unsustainable credit card debt

College Students follow—unrealistic education debt

26 posted on 08/02/2023 1:44:19 PM PDT by ActresponsiblyinVA
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To: MinorityRepublican

The two Macys nearest me have turned off the escalators and they are barely running the AC.


27 posted on 08/02/2023 1:53:15 PM PDT by jean michael
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To: McGavin999

Bingo. Us also. I told my wife that we needed to buckle down and get rid of all our debts so we got serious and did it. Then the interest rates started rising and we are now in good shape.


28 posted on 08/02/2023 2:09:32 PM PDT by Texas resident (We are living through Barak's fundamental transformation)
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To: jean michael

Americans are going to Chili’s for dinner on Friday night instead of shopping at Macy’s.


29 posted on 08/02/2023 2:11:03 PM PDT by MinorityRepublican
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To: Texas resident

Some folks here like to beat up on Dave Ramsey but I think he has it right.

Sleeping comfortably at night because you have no debt is priceless.

It is worth the struggle.


30 posted on 08/02/2023 2:12:58 PM PDT by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: RomanSoldier19
Americans got used to spending big during the pandemic ...

Because under the admin of that malevolent asshole Xiden the price of most everything has about doubled.

FUB !

31 posted on 08/02/2023 2:53:31 PM PDT by tomkat (SOTU = FUBAR)
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To: DeplorablePaul

Yep. A lot of tenants stopped paying rent during the eviction moratorium. They spent the rent money and stimulus checks/enhanced UIB on vacations, tvs, cruises, you name it.


32 posted on 08/02/2023 5:22:34 PM PDT by AbolishCSEU (Amount of "child" support paid is inversely proportionate to mother's actual parenting of children)
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To: EEGator

What is CRE? I Duck-Duck-Went it, but nothing relevant waddled up.


33 posted on 08/02/2023 6:16:45 PM PDT by gitmo (If your theology doesn’t become your biography, what good is it?)
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To: gitmo

Commercial real estate. Sorry about that.


34 posted on 08/02/2023 6:18:15 PM PDT by EEGator
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To: CFW

Same here. I WFH almost two years and then retired at age 70.
I saved a lot on gas and eating lunch at a burger joint. We did eventually start buying things online, but we are spending a little less than we did when we shopped in person.

Post retirement has seen increased medical and prescription costs. Same meds and same doctor visits, jusr higher our-of-pocket for both.


35 posted on 08/02/2023 6:24:02 PM PDT by gitmo (If your theology doesn’t become your biography, what good is it?)
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To: MrRelevant

How is inflation down when prices keep rising? Gas went up 62 cents a gallon this week. Groceries are more expensive.


36 posted on 08/02/2023 6:28:20 PM PDT by gitmo (If your theology doesn’t become your biography, what good is it?)
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To: EEGator

Thanks.


37 posted on 08/02/2023 6:28:52 PM PDT by gitmo (If your theology doesn’t become your biography, what good is it?)
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To: gitmo

Anytime.


38 posted on 08/02/2023 6:30:34 PM PDT by EEGator
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To: gitmo

And I was offered $850K for a house I bought for $100K 33 years ago.


39 posted on 08/02/2023 6:33:06 PM PDT by gitmo (If your theology doesn’t become your biography, what good is it?)
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To: RomanSoldier19

You created my addiction, Uncle Teet, so now you gotta give me some daily milk mumma.

Uncle Teet chest feeds.


40 posted on 08/02/2023 9:36:14 PM PDT by If You Want It Fixed - Fix It ( )
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