They Out-Spent and Out-Earned inflation without breaking a sweat, and saved some too.
Banks, forced by competition from money market funds, got the memo.
Only 2% of credit card users are delinquent, according to new data from the New York Fed; 98% are current.
Those who can, pay cash to avoid the interest rates. Subprime credit tightens substantially.
Where’s the hangover from the party?
The much-awaited and hoped-for slowdown in the second half turned into a drunken party in Q3.
Income from all sources minus government transfer payments outruns inflation again.
It’s just not the same anymore with QT and rate hikes. Household balance sheets by wealth category.
But they’re earning more than they’re spending, and despite spending like drunken sailors, they’re saving a lot.
Not everyone has credit cards, and only a portion of those that have credit cards have revolving balances that accrue interest: a stroll through the data.