While bankruptcy filings have decreased
consumer credit spending has exploded
The pattern of lower bankruptcy filings and increased consumer credit from 2009-2015 is following a near identical pattern as consumer behavior after the dot com bust from 2001-2008; as consumers come out of bankruptcy they load up again on increasing amounts of debt.
Economists expecting that second quarter and second half 2015 U.S. GDP will get a boost from increased consumer spending or a rise in home sales, should note that the U.S. consumer, while seemingly better able to keep the collection man at bay and is no longer filing for bankruptcy at record rates, is over loaded with debt and tapped out
Comments(0)