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.
One reason why the drunken sailors are in no mood to slow down. Lots of them make a lot more money on T-bills, CDs, money-market funds. Others pay more.
Not much of a hangover yet. Going to see more of these frying-pan charts
Keeping an eye on them because some day enough of them will get in trouble to move the needle. But not yet.