"Consumers take out loans and save less when unemployment is low and they feel safe in their job prospects" - this likely applies to the upper 20% (my estimate) who have enough savings to survive an emergency and can afford to save a little less to put in the new kitchen. The majority of people especially those who cant afford a $400 emergency save less and take out CC debt because they need it to survive until the end of the month.

Rents do go up when people can afford it and then there is the very real possibility of a a large portion of people suddenly not being able to afford it anymore and evictions spike. People afford it because they have to live somewhere if all rents in the area are high and they cant afford to move, they cut elsewhere. The 35% of people that cant afford $400 cant afford to move so they will eat the rent increase of $50 per month because they have no choice.

Chapter 11's are an indicator, perhaps not a strong one but as business consolidates, employee choice is affected.