Consumer Debt Forces Recession – U.S. Economy Tanks as Housing Market Struggles
Consumer debt has reached troubling levels in the United States, causing a ripple effect that is leading to a recession. The housing market, a key indicator of the overall health of the economy, is struggling as more and more Americans find themselves drowning in debt.
One of the main reasons for the increase in consumer debt is the easy availability of credit. Banks and financial institutions have been all too willing to lend money to consumers, even those with less than stellar credit scores. This has led to a surge in spending, with many Americans living beyond their means.
As a result, consumer debt has reached record levels, with credit card debt, student loans, and auto loans all contributing to the problem. According to recent data, the average American household now has over $7,000 in credit card debt alone.
This increase in consumer debt has had a direct impact on the housing market. Many Americans are struggling to make their mortgage payments, leading to a spike in foreclosures and a glut of homes on the market. This has caused home prices to drop, further exacerbating the problem.
The housing market is a key driver of the economy, with construction, real estate, and related industries all feeling the impact of the current downturn. As more and more Americans struggle to make ends meet, consumer spending is down, leading to a decrease in economic growth.
The ripple effect of consumer debt is being felt across the country, with businesses cutting back on hiring and investment, and consumers tightening their belts. This has led to a vicious cycle of economic decline, with no clear end in sight.
In order to turn the tide, policymakers need to address the root causes of the current crisis. This includes implementing regulations to curb the easy availability of credit, and providing support for struggling homeowners to help them stay in their homes.
It is clear that consumer debt is a major driver of the current recession in the United States. As long as Americans continue to live beyond their means, the economy will continue to struggle. It is time for policymakers to take decisive action to address this growing problem before it is too late.
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
Thanks for having me on Todd. Always a pleasure sir!
I used to believe that everyone loses during a recession, but some make millions. Similarly, I thought everyone went out of business in the Great Depression, but some started new ventures. In short, tough times bring losses for some and profits for others, all rooted in the right mindset. Now, I've saved $220k for the future, even though I'm a complete beginner.
Ponzi schemes!!!
Well imagine if homes were sold what they are actually worth, which people could afford. Listen carefully….if the economy crashes hard it will be because of GREED.
So much of this discourse was entirely out of touch. Runaway capitalism is creating so much inequality that people are willing to break laws to get by. Not many people actually want pure socialism- they just want a chance to compete with others in the market. When we allow institutional investors to turn entire neighborhoods into a private equity vehicle instead of a place to rest and raise the next generation, we create a perverse incentive for illegal or unethical behavior at every rung of society.
Well, if usd and us is collapsing today , its because of the last 6 president (except trump), federal reserve and their corrupted members, wall street and nasdaq companies, american banks and all others who supported this globalization and american consumers. American greedy monster consumerism let it to happen. Spending more than you earn it.
Housing Market should crash, this is Non sense in USA. China and multiple Asia country Housing already crashed. China home is 50%-70% lost in their home value. BUBBLE gotta pop
All property owned as a collective is communism which doesn’t even come close to socialism. The right has so demonized socialism via Fox News etc that most Americans don’t understand the difference. Denmark, Sweden – those are socialist countries, and their citizens own property and are year on year rated as the happiest countries in the world! Their citizens have social nets like childcare, family leave, and the holy grail – free healthcare. If the corporations and the wealthiest Americans paid their fair share, then we could regain our middle class. Probably won’t happen if we have the biggest tax cheat of our generation in the White House, but it’s a goal!
Thanks
Great comment re: Cloward and Piven ( what you were alluding). If it were JUST 1 THING,we could fix it; shoplifting, fentanyl, immigration, anti-2A, inflation…etc…this is NOT by accident, understand. This strategy is being executed to bring chinese soviet style marxismnto America and then rest of world. I mean sht, this is 101, you guys should know this. Ive beenbeating this dmn drum for 12 years now. Fitall.
No sympathy for these folks from me.
I got rich when I realized that no one is coming to save me or do it for me. If you take your life seriously, you will see a permanent improvement. I started and learnt consistency at 26, wasn't easy to inspire myself guys, but today I have over $3 million in my retirement savings at 40. Milestone for me.
Where in the hell are we moving to communism? Give me data, no talking points! If there is any communism in the united states, its the people subsidizing corporate taxes. Its not a red or blue thing, tell me how im wrong.
“Lifestyle adjustments”
Sounds like a rich person problem.
I’m over here using my credit card to help with $1000/ month daycare payments as a single mom.
Lifestyle adjustments, how about food on the table AND gas in the tank, that’s an adjustment I could work with.
Chase bank added to my checking account on my app breaking up as $67 charge into three payments and I kept seeing this so I called them and ripped into them like what in the world is this. I never approve this why would I want break this up into multiple payments. it is being forced on people unless you call the bank my credit score is 760 my credit card with Chase has a zero balance, I’m not behind on bills I’ve have a large savings. Why did Chase think that they can just put that in when I called they said oh no no no it’s not automatic it’s we’re just making this offer and I said I’ll get rid of that offer on my I don’t want a see it on my app. I don’t wanna see it on my account, these bags are doing it and pushing it on people. This is the government trying to save economy that they created.
Vomit
What do you think about gold IRA to protect my 403?
House prices aint hoing down with hyperinflation
Foolish giggerish. What will happen.when america cant pay national debt and then war breaks out and we spend 20 trillion what will happen then fools. You ignore history
Thanks gpr millikn vommeticials
Go Brandon print print print!
The gold stackers hero whoohoo!!!
People are all about the what about ism because big institutions, rob and steal from the little guy. They shove a spiked batt up everyone’s butt and when things go south for them, they are given amnesty in the terms of bailouts. The government has created this culture. Every action has a reaction. I am not defending these people. I think petty theft is wrong wrong but people don’t care anymore. When the price of everything has skyrocketed tenfold, this is the result that you get. The rich get richer the middle-class gets priced out, and then this culture of destruction unfolds. I’m not sure why people are so confused or surprised by this.
At this point there is no way to fix anything. America is broken at a moral level. Everyone is trying to take advantage of everyone else.
Everyone must stop paying their credit card
The goverment and institutions will be forced to lower interest rates and raise wedges
Or banked collapse
Protest the tax
Stop paying
We should absolutely ban corporations from single family homes guy on the right fear mongering that it would be an issue is null and void. You can not have limitless capitalism we are at a point where it’s out of control and we have more monopoly companies than ever before it’s a huge issue. The stock market is way over valued and part of the issue is companies are raising prices rather than gaining customer because of their product / business model causing inflation to linger just so they can meet their earnings call numbers and maintain market prices. It’s crazy time and eventually shit will roll down hill it’s coming because this is not sustainable
What is Jacks podcast or last name.?