Don’t forget more than 70 billion in student loan payments that restart in September. While not every debtor stopped payments, a huge number did. That money will get sucked out of the economy, causing a slow down among the cohort that “should” be buying homes and getting married.
It will not impact the markets October 1st…but it will lead to lower consumer spending, higher consumer debt, and a delay in capital purchases (cars, homes, washers, dryers, etc.) The average loan is somewhere around $350 a month. But there are 40 million debtors. It’s going to hit just about the time holiday spending is supposed to surge. That will multiply into the economy in Q4 and Q1.
buckle up for a rough ride.