https://www.reuters.com/business/us...y-1-trillion-2021-most-since-2007-2022-02-08/ Here we go...this is what I've been waiting for when it comes to bubbling. Pay attention this this trend. Debt and inflation are both increasing. Interest rates are going up to slow inflation, but will be a major burden on the consumer with their increasing debt. Real wages actually decreased and I'm not sure they will catch up. The real estate market is obviously fictitious. There's not all this new money for all these people to buy houses at these prices. It might take 2-3 years, but this house of cards economy will crumble and it won't be a 2 month drop then everything back to normal again. It's going to take years to get back to highs when it does. Not sure when the national debt will finally hurt us, that could take decades. However, this is a predictable economic crisis coming in the next few years.
"households, supported by increased savings and higher incomes, seem to be handling the larger debt loads well so far, researchers said." Honestly I don't see how you can extrapolate such dire assessment from the article. I see that the economy is booming, households are willing to increase their debt load on account of greater savings and employment security.
That is the folly right there. Why the hell do you want to owe more and more and more?!? That is not financial security, but financial INSECURITY! Terrible plight!
Inventory is at lows. It's down 42% from 2019. https://www.fool.com/the-ascent/mortgages/articles/us-housing-inventory-is-at-an-all-time-low/
It was the largest increase since 2007. If this becomes a trend it will indicate consumers are getting reckless again. People got lots of free money last year. Now inflation is hitting them and they have less in terms of real disposable income. People don't like to scale back and live within their means. They are greedy and like to keep the train going.
Americans are the world's greatest consumers! Reduce consumption and half the world's economies go in recession. Freedom comes at a heavy price.
Cost of living for US families up an extra $276 on average Overall household debt jumped by $1 trillion, the most since 2007, according to the Federal Reserve Bank of New York. Driving that debt in part are car and home loans, as car prices jumped up over 12%. Low supply and high demand are driving up car prices, but shoppers are still driving off with new cars and higher loans. “What's going on right now, there's an inventory shortage but there's also unprecedented consumer demand. So every car that any manufacturer can produce, it's gobbled up right away by consumers,” said Josh Stewart of Stewart Toyota in Florida. The median home price is up nearly 20%. “House prices have gone up by leaps and bounds,” said Bankrate’s Greg McBride. “Homeowners have more equity than they had before. So that's not necessarily a troublespot.” Credit card balances increased by $52 billion in the fourth quarter of 2021, the largest quarterly increase ever recorded.