Dead Man Walking, US Consumer Search For ‘Debt Relief’ Surges


Dead Man Walking, US Consumer Search For ‘Debt Relief’ Surges

It has been brought to my attention that the US-consumer is literally a dead man walking with uber amounts of debt. Recent search term trend ‘debt relief’ in the United States has just surged to 7-yr highs—-not seen since 2010. What this means is that the consumer is seeking partial or total remission of debt to creditors.

According to a recent Forbes article—President Donald Trump has been correct that an astonishing 96 million Americans are not working. What ever happened to the best jobs market ever?

Our friends at reports the true unemployment level at 22.0%. Interesting, because the Bureau of Labor Statistics (BLS) reports their unemployment rate at 4.7%. Someone is lying here…

Diving further into the health of the consumer, we come across a report from Teddy Vallee. This analyst points out over the past six-years, the consumer has faced material increases in core expenses such as health-care, financial and insurance, taxes, and shelter. The charts below are telling us that the consumer’s margin is shrinking as revolving credit surges indicating the consumer is taking out more debt to continue today’s living standard.

It appears that the consumer is now at the breaking point, as major credit card providers 30-day delinquencies y/y are starting to reverse course.

We’re even seeing stress in the auto market, where delinquencies are absolutely surging. Nevertheless, consumer’s discretionary income ex autos and gasoline demand y/y is declining.

On a much larger perspective, the American middle class is being robbed blindly by the Federal Reserve and the .01%, while they watch 52 channels of American Gladiators. The middle has been outright hallowed out, as the West descends further into the Fourth Turning.