it's not looking good
This is only the beginning...
"Consumers boosted their borrowing in March at the fastest pace in four months, suggesting they are remaining resilient in the face of rising energy prices and a painful housing slump."
Reality check: Consumers aren't borrowing for the fun of it. They are starting to live on their credit cards. They seem to know that they better get whatever they want now before the sky falls.
"Consumer spending is indispensable to a healthy economy."
True, but someday the piper must be paid. Americans have the lowest saving accounts since the Great Depression, as a matter of fact, our savings is in the negative territory. That means that we are living outside our means. And if our economy depends on us spending, what's going to happen when we stop?
"Consumers heated up their credit cards in March. Use of revolving credit, primarily credit cards, rose at a sizzling pace of 9.2 percent. That was up from a 2.9 percent growth rate in February and was the biggest increase since November."
Again not a good thing. This is nothing to boast about! With gas prices expected to hit $4 a gallon this summer and 2.2 million ARMs (Adjustable Rate Mortgages) about to reset (from 1% interest rate to 5.25% or more), it's going to be an interesting summer. The nicest thing I've read is that we're going into a recession, the not so nicest is something which will takes years to recover from. From boom to bust, how many times has that been repeated in our history?
My advice as always, get rid of credit cards, pay off any loans you have, make a budget and start living within your means. It's the only way to ride this out.
"Consumers boosted their borrowing in March at the fastest pace in four months, suggesting they are remaining resilient in the face of rising energy prices and a painful housing slump."
Reality check: Consumers aren't borrowing for the fun of it. They are starting to live on their credit cards. They seem to know that they better get whatever they want now before the sky falls.
"Consumer spending is indispensable to a healthy economy."
True, but someday the piper must be paid. Americans have the lowest saving accounts since the Great Depression, as a matter of fact, our savings is in the negative territory. That means that we are living outside our means. And if our economy depends on us spending, what's going to happen when we stop?
"Consumers heated up their credit cards in March. Use of revolving credit, primarily credit cards, rose at a sizzling pace of 9.2 percent. That was up from a 2.9 percent growth rate in February and was the biggest increase since November."
Again not a good thing. This is nothing to boast about! With gas prices expected to hit $4 a gallon this summer and 2.2 million ARMs (Adjustable Rate Mortgages) about to reset (from 1% interest rate to 5.25% or more), it's going to be an interesting summer. The nicest thing I've read is that we're going into a recession, the not so nicest is something which will takes years to recover from. From boom to bust, how many times has that been repeated in our history?
My advice as always, get rid of credit cards, pay off any loans you have, make a budget and start living within your means. It's the only way to ride this out.