This is the $64K question. There’s a lot of pent up cash savings over the last 24 months. On the order of $4.2 Trillion with a T dollars in individual savings accounts more than what was there in December,......Do people have the extra cash to offset the increases or are they maxing out their credit cards?
2019.
That number is shrinking now, almost as quickly as it grew. Personal debt is shrinking and credit accounts , which were at their lowest about 9 months ago are starting to increase a bit.
But the cost of money is increasing. Just saw where’s the average American homeowner has nearly $185K in equity; the question is how much do people want to borrow if the delta between investing and borrowing is low or zero. In essence, the era of free money is unwinding and we’re watching it play out in front of us.
I think it’s too early to understand what’s going on and I think Christmas time is going to be very interesting.