You’ve probably been hearing all the jazz about the economy booming, low inflation, and record-low unemployment rates. But let’s pause for a sec and look at the real deal.
Check out these stats from the New York Federal Reserve: total consumer debt is sitting at a whopping $17.5 trillion. Most of it’s housing debt, but there’s still trillions in other debts—auto loans, student loans, and credit cards—all soaring to record highs.
And hey, don’t buy the hype that inflation’s a non-issue. Every type of debt’s skyrocketing, while wages struggle to keep pace. Even with GDP growth and low unemployment, something’s not adding up.
Here’s the kicker: delinquencies are on the rise too. Except for home equity, every debt category’s showing more folks falling behind on payments.
Take student loans, for example. Politicians masked the problem by delaying credit bureau reporting on missed payments. Sneaky, right? But the Federal Reserve isn’t fooled—they’re seeing delinquencies climb.
Let’s talk about credit card debt. It’s hitting historic highs, and here’s why: inflation’s spiking, essential costs are through the roof, and those sky-high interest rates? They’re back from the ’80s.
Now, credit card debt isn’t always about reckless spending. Many folks are just trying to cover basic needs. But with costs soaring and wages stagnant, it’s a vicious cycle.
So, don’t judge folks with credit card debt too harshly. Blame it on bad monetary policies, not bad decisions. That’s where Jerome Powell and the Federal Reserve come in—they’ve been making some questionable calls.
So, there you have it: the real story behind those flashy economic headlines. Debt’s rising, delinquencies are climbing, and everyday Americans are feeling the squeeze.
Stay tuned for more updates. And hey, thanks for sticking around. Take care, folks!