Quote:
Originally Posted by PBzeer
Before you knew it, all of a sudden, the card was maxed out. Buy hey, no problem, there were plenty more cards available and banks were begging people to take them. Dept piled on top of debt, and people were using one card to pay on another..
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No argument on this. However, you missed the point. Why were people using credit? That's the point.
If as you maintain, it was for unneeded goodies, we should see no problem in consumer spending now... or with increased savings rates.
Instead we have a tsunami building in the credit card companies as people are defaulting.
1.) They are defaulting on their credit cards at an unprecedented rate.
2.) They aren't saving anything this year...same as last year and the year before...etc..
3.) They are purchasing less
So, if that wage group of folks making $75K a year, or more, is growing... where's their money John.
Where is it??
It isn't there. It never was there. That's the point, as this can only happen if the middle class is shrinking. If the middle class were growing, we would have one less problem in the world right now.
This exchange is exactly why conservatives are getting tossed on ther fannies this year. They can't even acknowledge the problem, which is why it doesn' t get fixed.
Instead it blew up on all of us.