According to the Federal Reserve, America's savings rate just hit a fresh low while credit card balances hit a record high--with 25% interest.
In short, the median American is currently scrounging for coins in the couch and putting the Hamburger Helper on the visa.
According to the Bureau of Economic Analysis, the nation's personal savings rate just hit 2.9%. That's 2.9 cents on the dollar.
That's the second worst rate in 75 years.
What's driving it is that, according to a new analysis, inflation-adjusted real median household income--how much the 50th percentile of households make--actually dropped since 2019.
In other words, in terms of how it feels to American households, we've been in recession for five years. Hence the savings, and hence the debt.
Note, that's even taking government inflation numbers at face value. If, as many suspect, the official numbers are lying, it means we're a lot poorer than five years ago.
The last time that happened was the 2008 financial crisis. Of course, we're allegedly not in the middle of a once-in-a-century financial crisis--this is the Biden-Harris miracle, if you watch TV.
So, if things cost more and you're not making more, the last man standing is dumping the piggy bank, one last quick check of the couch cushions, and it's credit cards as far as the eye can see. READ MORE
