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Testing Will Allow Things to Open Up


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#21 Dex

Dex

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Posted 02 April 2020 - 08:17 PM

Social distancing = decreased consumer spending.  Most small businesses run on thin margins.  Less consumer spending = less jobs = debt defaults = no V recovery = severe recession.  If we social distance which means no cruiselines, no sports, no concerts, less going to bars and restaurants, less of pretty much everything that is not essential - you know what that means.  Maybe consumers and the whole country needs to rethink the debt orgy that we have been on for the past several years and start saving.  The problem is that I don't think the system can handle that kind of change.  If we can that would be best for long term growth.

 

Most workers are living paycheck to paycheck with debt.

 

What is happening now is the straw that will break the camel's back.  

 

There is no path back to 4% unemployment.  Watch U6 for what is really happening.

 

Deflation will be in our future before inflation.  

 

 

 

https://www.debt.org...ricans-in-debt/

 

 

Consumer debt was approaching $14-trillion after the second quarter of 2019, according to the New York Federal Reserve. It was the 20th consecutive quarter for an increase.

 

  • On average, each household with a credit card carries $8,398 in credit card debt.
  • Total U.S. consumer debt is at $13.86 trillion. That includes mortgages, auto loans, credit cards and student loans.

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