Re:58% of Americans are living paycheck to paycheck – includ...
by bequanna on Monday June 27, 2022 @11:26PM
(#31903744)
+ auto loans + home equity loans.
Many, many people will max out the house they can afford and pile 2 car loans on top of that. That right there can be 40-50% pre tax income.
We now have a public with only a fuzzy memory of what a real recession looks like. Thanks to the accommodative Fed over the last ~14 years and more recent COVID free money bonanza, people have been rewarded for blindly taking risk and conditioned to think that prices always go up.
A severe contraction with a jump in unemployment and no Fed bailout seems quite possible and might be a painful lesson for the overextended.
Many, many people will max out the house they can afford and pile 2 car loans on top of that. That right there can be 40-50% pre tax income.
We now have a public with only a fuzzy memory of what a real recession looks like. Thanks to the accommodative Fed over the last ~14 years and more recent COVID free money bonanza, people have been rewarded for blindly taking risk and conditioned to think that prices always go up.
A severe contraction with a jump in unemployment and no Fed bailout seems quite possible and might be a painful lesson for the overextended.