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The Federal Reserve Bank of New York reports that total consumer debt in the US surged by $109 billion in Q2 2024, reaching an unprecedented $17.8 trillion. This marks a 0.6% increase from the previous quarter and $3.7 trillion higher than late 2019 levels. Mortgage balances climbed by $77 billion to $12.52 trillion, while auto loans grew by $10 billion, hitting $1.63 trillion. Additionally, credit card debt spiked by $27 billion, totaling $1.14 trillion, which is 5% higher than the same quarter last year.
We will see even more households plunging into debt when interest rates fall again for the time being in the cycle and financing becomes cheaper. But a la long I see higher interest rates on loans, it is a trap that is building up here and will snap shut as many people need credit out of sheer necessity or are addicted to consumption.
this territory is moderated
Following in the footsteps of their government but they don’t have a printer.
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205 sats \ 1 reply \ @TomK OP 7 Aug
their money printers are the banks. but they are also a kind of Venus trap for the consumer lecherous
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If you owe the bank $1M, it's your problem. If you owe the bank $100M, it's the bank's problem.
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Yes, it's a trap, the trap that remains invisible until it shuts.
I'm baffled to hear from people that in US one can get many credit cards easily. Using credit card is a fashion there. The banks lure people with cashback schemes or bonus points.
But, it's people's fault in the end to fall in this vicious trap. US can't remain at the top for forever with such traps and National debt.
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scary but one must ask with wages being stagnant for what 20-30 years when adjusted for inflation what else are people supposed to turn to to make ends meet. I don’t think all of this spending is conspicuous consumption.
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If you are a student, why not take all loans you can get, you will never have to pay back anyway, so who cares. Same with the US, we will never pay that pack, they know it, you know it...yet here we are "our economy is strong".. This is amazing, at this point I'm really curious how it will end (if ever).
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a good idea in principle. but I never wanted to be the least bit dependent on this communist in my life
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deleted by author
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I guess us have around 30 trillion debt right now
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Gov debt just reached 35T
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I havent used a credit card in over ten years now. I always saw them as a money drainer in my wallet, so no thanks
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Well done!
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Fiat ruins everything.
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Why are auto loans growing? Who is buying a new car in this economy?
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I think that many people may have put off investing in a new car because of the high interest rates, which are now coming down a little and may now have to strike out of pure necessity
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Its not investing in a new car when you buy a depreciating asset.
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20 sats \ 1 reply \ @TomK OP 7 Aug
yes i know the wording is a bit wrong. and investment is when the car is used commercially, but in my opinion also when you use it to get to work. otherwise it is of course private consumption
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Its still a depreciating asset. A new car is never worth buying, just buy used.
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