Where does the money come from? They now out-earn inflation and dipped into their assets whose prices ballooned over the years.
Dropping prices cause dollar-sales to drop even if unit sales rise. Home Depot today blamed part of its revenue decline on lower prices.
New delinquencies way below the pre-pandemic lows. Bankruptcies at record lows. The OMG stuff in the media about household debt is funny.
Credit cards are a huge payment method but not a big borrowing method.
Americans came out of their funk they’d been in late last year. They’re 70% of GDP. They blew money left and right; spending on durable goods spiked!
They’re the Big Spenders, they move the needle. Millennials and Gen Z-ers are now the drivers of this growth.
Just a slower-growth muddle-through economy that adjusts to higher rates and sticky inflation.
Going to be tough for a recession to gain momentum with this kind of demand-overhang going into it.
The banking turmoil is seen as next test for consumers. Would be a hoot if they just go ahead and blow that off too.
Consumers are still spending like drunken sailors, especially online, now that they don’t have to blow so much on gasoline anymore.