Economic conditions on the backside of Forbearance

[The Heretic]

I don't know the actual statistics but my gut tells me that across the country people are maxing out their credit cards and within the next six months there will be a massive amount of bankruptcies filed.

Maybe some, but stats show most are not - that they have cutback on spending dramatically and putting cash into savings.

New threat to the economy: Americans are saving like it's the 1980s

Americans are slashing their spending, hoarding cash and shrinking their credit card debt as they fear their jobs could disappear during the coronavirus pandemic.

www.cnn.com

Which is smart on the individual level, not so good on the macro level. Long term it would be better, IMO, if the economy depended less on consumer spending (especially unsecured debt). I stopped spending so much back in December when the CEO of Daimler announced layoffs - I always payoff my CC debt each month too, but this next month will hurt (almost $4K in medical bills).

That said, defaults of various kinds are projected in the near term.

 

[The Heretic]

It is a choice that was made.

For some, paycheck to paycheck is not due to any choice they made - they just never got the opportunity to make more. That was my situation when I was starting out - the opportunities just weren't there in the 70s for someone who only had a HS education and no experience. I finally had to go into the military to get a steady income, and even then it was mostly paycheck to paycheck, but at least it was year round and not seasonal.

 

[The Heretic]

Nearly 1 in 5 Seattle-area renters doubt they can make July's rent


View attachment 715599

There will be a ripple effect there; at least some landlords will not be able to make mortgage payments.

 

[FortRock]

I read an article in a link attached to another article in my financial newsletter last week (I am seriously a layman on this stuff) that said the USA may be looking at a possible loss of 42% of GDP by the end of this year. If some of our forum members who are more dialed in on this could comment that would be good. Wouldn't a loss that big be fairly catastrophic?

 

[arakboss]

I don't know the actual statistics but my gut tells me that across the country people are maxing out their credit cards and within the next six months there will be a massive amount of bankruptcies filed.

If they aren't maxing out their credit cards now, they likely will be when the extra $600 week UI ends in July. We should be able to finds reports for credit utilization rates?

 

[ATCclears]

@FortRock 42% of GDP seems high. It would be SHTF if true.

10%? 20% as an extreme?

 

[MannyGlocks]

Guess who'll be blamed for economic insolvency?

P.S. It won't be blamed on the lockdown...but will be blamed on...

 

[Stomper]

So weird.... I've paid off an extra $8k in (long term) debt WAY ahead of schedule over the last couple of months.... and made this month's payments last month, and next month's payments this month.... and I've paid cash (or debit card) for everything for years now.

Get yourselves debt free ASAP.... the borrower is slave to the lender.

 

[Hueco]

Maybe some, but stats show most are not - that they have cutback on spending dramatically and putting cash into savings.

New threat to the economy: Americans are saving like it's the 1980s

Americans are slashing their spending, hoarding cash and shrinking their credit card debt as they fear their jobs could disappear during the coronavirus pandemic.

www.cnn.com

Which is smart on the individual level, not so good on the macro level. Long term it would be better, IMO, if the economy depended less on consumer spending (especially unsecured debt). I stopped spending so much back in December when the CEO of Daimler announced layoffs - I always payoff my CC debt each month too, but this next month will hurt (almost $4K in medical bills).

That said, defaults of various kinds are projected in the near term.

Having been in your shoes before re: med debt, if your credit is alright, a new CC is probably the easiest way to get a 12 month 0% "loan." <insert credit card warnings here>.

 

[MannyGlocks]

Stomper,

You said 'slave'...the pc poh-leece will be all aflutter......good!

 

[The Heretic]

Having been in your shoes before re: med debt, if your credit is alright, a new CC is probably the easiest way to get a 12 month 0% "loan." <insert credit card warnings here>.

Yeah - I can do that, but I won't. With my luck I would suddenly need all of the credit line for some other emergency and not have it. My CC is my emergency backup just in case. I have the cash and then some, but I pay with the CC to get the rewards and to maintain a credit history. I also get free use of the $ for a month or two.

 

[Hueco]

Yeah - I can do that, but I won't. With my luck I would suddenly need all of the credit line for some other emergency and not have it. My CC is my emergency backup just in case. I have the cash and then some, but I pay with the CC to get the rewards and to maintain a credit history. I also get free use of the $ for a month or two.

I feel like I'm almost looking in a financial mirror talking with you.

I've never felt the need to spend, spend, spend. But, I do like having ~90k in unsecured debt available to me at this point in my life. If S is going to HTF, I'll be making some big purchases ;-).

That or I may run it out closer to end of life for one last wild ride. Not sure yet.

 

[Stomper]

Stomper,

You said 'slave'...the pc poh-leece will be all aflutter......good!

Well, as you've probably seen over the course of time... everyone's self esteem and validating their irrational beliefs is of the UPMOST importance to me.

 

[Stomper]

I feel like I'm almost looking in a financial mirror talking with you.

I've never felt the need to spend, spend, spend. But, I do like having ~90k in unsecured debt available to me at this point in my life. If S is going to HTF, I'll be making some big purchases ;-).

That or I may run it out closer to end of life for one last wild ride. Not sure yet.

You're only stiffing the rest of us left behind after you're gone... businesses don't pay taxes and they don't "lose" money... their customers do, as they just pass it along to them.

 

[Hueco]

You're only stiffing the rest of us left behind after you're gone... businesses don't pay taxes and they don't "lose" money... their customers do, as they just pass it along to them.

Chill. It was a joke. (So too was: if the SHTF, no one is going to be taking credit card payments for anything. Again, joke.)

 

[Stomper]

Chill. It was a joke. (So too was: if the SHTF, no one is going to be taking credit card payments for anything. Again, joke.)

I'm chilled, Saul Goodman...

I just want to make sure people reading this realize how economics really work....

If I was really mad at you, I would have posted this.

 

[Hueco]

I'm chilled, Saul Goodman...

I just want to make sure people reading this realize how economics really work....

If I was really mad at you, I would have posted this.

View attachment 715751

Wait, people on a gun forum don't know how economics works? As if there haven't been enough lessons on supply and demand over the last 20 years.

 

[Dinglenutz]

I don't know the actual statistics but my gut tells me that across the country people are maxing out their credit cards and within the next six months there will be a massive amount of bankruptcies filed.

Didn't everyone get some massive unemployment/relief checks or something? I got nothing but I heard a lot of people were expecting freshly printed money.

 

[Stomper]

Wait, people on a gun forum don't know how economics works? As if there haven't been enough lessons on supply and demand over the last 20 years.

Being into, and owning guns doesn't make anyone (or a demographic group) "smart" about economics, any more than not a few dopes on this very website who still continue to vote for the statist schmucks who would have them disarmed, or cheer on ANTIFA and all that stupidity they're doing.

 

[MannyGlocks]

Why do they bother coming here?

If creating annoyance is their goal, it's not working.

Thy ignore (and chuckle) feature.

It comforts me when commies come abuzzin....for the briefest of moments they're here and poof, they're gone into the ether never to be read again.