Posted on 08/21/2023 7:17:51 AM PDT by Kaiser8408a
Yes, The Fed has a line on you! And will likely keep raising rates as inflation stays elevated. This means higher mortgage rates unless China slips into a deflation doom loop.
Thanks in part to The Fed, housing affordability is at the lowest level since the 1980s.
And we are seeing tail volatility in the US Treasury futures.
Then we have consumers being tapped out.
Despite retail sales (reported on Tuesday) crushing it (a 1% increase for the control group in July after a 0.5% increase in June), there is a narrative that the consumer is getting tapped out.
Fastest Ever Rate of Increase in Credit Card Debt!!
Credit card debt has been rising at what seems like an alarming rate. To cope with Bidenflation.
Credit Card Delinquencies Gapping Higher!
This chart seems almost scary because it shows a rapid rise in delinquencies. While not quite “parabolic” it has increased by almost 50% in a little over a year! However, 0.8% to 1.15% seems a lot less scary than saying it has increased by 50% (which is why I tune out whenever anyone talks about credit spread moves in percentage terms).
Not only is credit card debt rising at an alarming rate, it is also coming just as delinquencies spike higher!
(Excerpt) Read more at confoundedinterest.net ...
My response, after watching this chitshow for many decades: I simply became debt free. I’ve talked to others who have taken this route and it has been a real eye-opener. It doesn’t just save you money. It changes your life. It changes how you see this world, this government, this culture, and what’s important to you and what isn’t.
The best thing a person can do for themselves is get out of all debt, including their mortgage. And by all means, own your own home and make that home in a place where the real estate taxes won’t kill you. For me personally, it was rural kentucky, to which I moved from Seattle 12 years ago.
A lot of people predicted, during the pandemic, that after everyone got their payments from the government and lost their jobs and quit their jobs etc, that eventually we were going to see a massive spike in credit card debt. This isn’t a surprise to anyone who pays attention.
And, of course, a lot of that debt is just going to get written off. We’re not talking about student loans here. People can bankrupt themselves out of it. No problem.
There is no safe harbors in the coming storm.
But some are safer than others. Safety is a relative thing.
Real estate taxes ensure you NEVER own your own property. The other stuff? If you can, do it. 😁👍
I'm waiting for my next paycheck to bring all the credit balances to zero again. I had a nasty four-digit surprise last month — but paid the “statement balance” on all cards to reduce the interest charges. That means I'm paying off the surprise in two months, while still paying all the bills on time.
I'm taking advice from a spectrum of sources to keep my power dry and my credit cards paid off.
Watch Biden remind them that his son died in a wildfire in Iraq.
Yep. All you can do with the RE taxes is mitigate it the best you can.
Squatting might be a good option - if you’re single.🤣
Homeless folks seem to get by in a lot of instances. Homeless shelter? Nope. Avoid being put in “the system”. 🤔👍
Student loan payments start soon after a 3.5 year delay. Put them all behind bars? Here we go...
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