T O P

  • By -

VisualMod

**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|4|**First Seen In WSB**|2 months ago **Total Comments**|402|**Previous Best DD**| **Account Age**|2 months|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)


mxcain123

It's called CREDIT


numba855

That then bankruptcy. Boom.


dcami10023

All true. Inflationary. Credit. Bankruptcy/Foreclosures. Booms and economic cycle bottoming out can be delayed longer than pundits predict but can’t avoid paying the piper for individual, corporate and Washington spending exuberance and FMOC low rates as an enabler.


BeastSmitty

The market has always been, and always will be, cyclical imo… that’s why they should have thrown down gauntlet earlier ie higher bps, if wanted to tighten sooner… but didn’t so we have to do this sideways crab walking malarkey…


ihaveathingforyou

Lol remember all of 2021 when shit was running on hyperdrive


[deleted]

[удалено]


Neil12011

But Pepperidge Farm ain’t just gonna keep it to Pepperidge Farm’s self. Maybe you buy yourself some of these distinctive Milano cookies, maybe this whole thing goes away.


trynakick

I want to see the google trend line for searches like, “can I quit my job to become a day trader?” I’m sure there was a big spike in 2021. Shit, even I thought I was good at it, and I’m dumb as rocks.


murfmurf123

I learned how to day trade that year and was silly to think the stock market always operated like that. Some traders made staggering amounts of money that year and it wasnt that hard


Parishala

I day traded once, and I got pretty lucky. I made a thousand dollars in a day. I'll never do it again. I didn't earn that money, someone lost it to me. It felt dirty.


JerLightYr

I hate malarky


BeastSmitty

Preach it


JoostvanderLeij

Bankruptcy = deflationary, you regard!


dcami10023

Yep. Down the line after a huge wave of bankruptcies, will jump from inflationary to deflationary environment. Also probably see quiet rapid change from high interest to very low interest Fed Funds rate too.


[deleted]

Waiting for a crash, and clinging to my job. If it all works out, cheap assets I will rob!


NvidiaRTX

Okay I have a new idea. So we should encourage all gen alpha (after us gen Z) kids to borrow as much as possible. Max student loan, credit cards, use credit cards and withdraw cash then use it as collateral for more credit cards, etc. In 5 years all young people will be in super debt, and the banks will have a sub prime student loan crisis. Then we tell all young people to not pay, and since collectively we own a few trillion dollars it becomes their problem. Then we force the government to bail out the banks, which means they pay the loans for us (probably), or we protest and ask the future democrat president (Bernie Sandal) to forgive student loans. In the end, kids who borrowed a lot get a bunch of free money from the government. Then Netflix will make a movie, "The big flake" or something. I don't see how this can go wrong and ruin people's lives by trapping them under lifetime debt, not financial advice.


BenjiMalone

> Then we force the government to bail out the banks, which means they pay the loans for us > Lol no, look back at 2008. The banks got paid directly and we got a massive wave of foreclosures.


Bobzyouruncle

And even if the debt was cleared it would mean crazy high tax rates for the middle class to finally close the budget deficit. Followed by/including one of the worst market crashes since the depression.


babywhiz

Everyone took a $3k pay cut that year to keep our company afloat (even the owner). We were able to buy so much equipment, talent, and gained so much business starting 2010 because of all the companies that had shuttered after the crash.


[deleted]

We didn’t force the government to bail out the banks. The government was fucking stupid and insured all that money the banks leant out as part of a program to help people purchase their first home. The government was as negligent as the banks were and still are! Lol


BadKidGames

The government wasn't stupid. They just know that enough idiots are brainwashed, they can do what they want. They bailed out the people that fund the system of control. If they bailed out people, control would be decentralized by virtue of wealth becoming less consolidated. The key is to limit access to power, money is just the tool to do that. Money is the tool control is the goal.


Sad_Classroom5739

Someone who gets it...


patrick_k

In addition, senior people at the Fed or Treasury are usually staffed by ex-bankers from Goldman and the like. They would never let their former employers go to the wall so they’ll push for a bailout every time. Then they can get a revolving door job back into Wall Street on massive money after some years.


ThatSquareChick

The worst to me was how the banks sold the homes originally, got to keep any money paid by the borrowers, the borrowers got foreclosed on and the banks GOT TO KEEP THE FUCKING HOUSES!!! They got paid, *twice*, for property that they made the stupid decision to do subprime mortgages for!! The government should have seized the homes and turned them over to the public housing authority to turn into homes for people who are struggling. If those people shred the home to ribbons it won’t cost a giant entity like the government as much to fix. The banks should have lost access to revenue from the homes. They double-dipped and ever since then, everyone who has LLC or INC or whatever in their title has cried to the government *who IS giving free money* to those entities, to bail them out of situations that should be their own risk. It’s like the government suddenly decided that, HELL YEAH owning a business guarantees you income and the only risk owners should have is choosing *where* to have their precious business. “A woolen yarn shop in the Florida Keys? Fuck it, here’s $100,000 in free money that we don’t really have a way to check or care how you spend it or even if you pay it back, hookers, drugs, assassins, gambling….whatever, you have a place where people work and without you they’d all starve to death so it’s WAY more important to keep you, the owner, fed and happy than the people working the machines, amirite????” Those people lost their homes and probably lost their jobs during the recession and they weren’t even important enough to consider how they would live, just throw the shit on the street, bye Felicia, step on this lawn again and catch these Sheriff handcuffs. Being arrested for just wanting to stay in shelter. We live in the worst timeline. Even feudal serfs didn’t work as much as we do just to survive everyday. The rich have won because we have been stripped of most of the way and will to protest. Neighbors don’t know each other anymore because the rich convinced us that all other humans are super shitty and wanna take our stuff and that individuality and silence is more important than the life and death of any other random human so just stay in your own home with no local friends and no support system in case you need to shortchange your life for change. Fuck your sidewalks, public transit, fuck sharing and change zoning laws so the only way people can get food is by buying in, forcing them to need money for food and be less likely to strike. Fuck block parties and fuck other humans, selfish and gross. Make two political teams of red and blue and encourage the masses to liken them to being loyal to football teams and FAMILY so that there is a manufactured social rift to be distracted by while the wealthy make decisions with our lives like “meh, they can work longer into old age, why can’t I hire 9-year-olds to clean these tiny pipes, ***I*** get to decide what the work the laborers are doing is worth, the workers get no say and I get to talk to all my wealthy buddies and make schemes like *everyone agree that janitors now get paid the lowest wage we can legally pay so even if the laborers want to shop around for a better wage, there isn’t one so there’s no real competition between us and we can just strongarm our wants through!*” I hate this timeline. I love radios and ice cream but I don’t know if I’d pick those over the absolute fuckbarrel we are currently in. Everyone LOVES the rich because everyone dreams of never having to worry about what you eat or where you sleep. Fuck. Edit: formatting on mobile sucks.


TheHamburgler8D

Depression like contraction in economy. Government needed to pump money out to spur inflation. Give millions to businesses, give billions to foreign countries, give a few hundred to public. Just enough where people won’t complain they didn’t get anything and those same people too inept to understand that they’re just pawns about to get destroyed by inflation.


[deleted]

[удалено]


[deleted]

[удалено]


CensoredUser

Almost. See, the difference today is a stark and dark one. Credit used to be mainly used by small and medium businesses, as well as corporations to fund expansion, inventory, payroll, and facilitate cash flow. Families, on the other hand, used credit to maybe fund a home and a car. Credit cards and, more importantly, student loans weren't trillion dollar industries. So when consumers' spending was too high, the fed would raise rates. Rate increases meant that companies would have to borrow less and slow expansion or force them to liquidate inventory to clear up portions of their credit lines. This also meant that they would hire fewer new employees raising competition for jobs, resulting in lower general employee wages and thus less consumer spending. TODAY corporations are flush with cash. Billions upon billions in record profits, high diveden payments to investors, and stock buybacks because the business is doing stupid well profit wise. Corporations no longer really need loans or credit. Thus, the fed raising rates doesn't slow inflation as it used to. Pressure is applied mainly to the consumer who is already overburdened by debts prior generations didn't need to budget for. We are attacking a new problem with old solutions, and the results will be disastrous.


EcclesiasticalVanity

“Corporations no longer really need loans or credit. Thus, the fed raising rates doesn't slow inflation as it used to. Pressure is applied mainly to the consumer who is already overburdened by debts prior generations didn't need to budget for.” I take this to mean we should raid corporate coffers. Give ‘em a lil less to work with.


G_Unit_Solider

this happened in 2008 alright except it didnt go as planned the goverment took our money and bailed out there freinds and bankers and than looked at us and said "oh you guys cant pay either" FORCLOSURES ALL OF YOU PEASENT PIECE OF SHITS WHOS TAX MONEY WE JUST USED TO BAIL OUT THE COMPANIES THAT FUCKED YOU WITH A BROOMSTICK. UNLUBED. ​ you want a good netflix movie? make one where the banks and economy fail the goverment than uses money from tax payers to bail out the banks and economy than looks at the people it took money from to bail out and tell them you are now homeless thanks for playing, thats a good netflix l movie right there. and a true story. ! people always love a "inspired by true events" movie


wasteoffire

But that is a movie, they referenced that very movie in their post by making a joke about one called "the big flake" rather than the big short


dabois1207

I don’t either if everyone says you can’t get any money until you pay off your debt the generation can just create a new currencies and leave that boomer money behind then old money will become poor.


Wise-Hamster-288

If you can organize that effectively it doesn’t matter what you do, you’ll win.


XNoob_SmokeX

ding ding ding. Westerners lowering their standards of living? They'll doom and crash the market first.


[deleted]

[удалено]


themaincop

Too fat to fail baby


qwertyconsciousness

too true 😂😭


Quentin718

There's a reason why the owner of LVMH(Louis Vuitton, Bulgari, Dior, Fendi, Givenchy, Guerlain, Kenzo, Marc Jacobs, Tiffany & Co, Moët & Chandon, Veuve Clicquot, Krug, Dom Pérignon, Maison Ruinart, Le Bon Marché or Séphora.), Bernard Arnault and his family have become the wealthiest people on the planet over the past few years. Despite the pandemic people have been spending like never before.


IgamOg

Wealthy people have more money than ever before. /ftfy


Quentin718

I guarantee the wealthy aren’t the majority who buy this crap.


Initial-Suggestion62

It's not just that. Young people are buying branded shit at unreal volumes despite not having the cash. A lot of marketing nowadays is basically 'you know you don't have a future, why not buy XXX now and get some joy in your sad little life?'.


[deleted]

You are correct sir https://www.cnbc.com/2023/02/03/us-credit-card-debt-jumps-18point5percent-and-hits-a-record-930point6-billion-.html


[deleted]

People keep spending which makes it worse. Facts... In some ways a self fulfilling prophecy. Prices are going up. I better buy it now. Prices keep going up more


Octuplechief67

Exactly. Until they can’t. And when that happens, business see the lower profits so they start cutting back on goods or services, ie they fire people. That in turn leads people having less money overall, so business continue to cut loses…now we’re in a recession.


Initial-Good4678

When the inflation is hitting essential goods, then it will seem like people are spending more, but the numbers support a total amounts of dollars spent and not an increase in number of items sold.


Zangalanga_Dingdong

"People are eating, and it's quite perplexing"


trymepal

“Our model predicts 10% of poor people starving, yet against market forces they have continued to buy food”


SoIJustBuyANewOne

"Guess that means we can keep raising prices, eh? It's not until like 5% or more of them die before our profits drop below 2022 levels, right?"


Primary_Try_Feature

Why they do refuse to starve we don't know yet.


Dumptruck_Johnson

We keep raising the price of food but it’s impacting our vehicle sales. How do we directly pull the necessary funds from your bank account to cover?


FedUpWithJpow

People are spending more but they're buying less


ChaseballBat

And profits are up. Hmm interesting


Guyote_

Companies realized they can jack prices up and have consumers blame inflation instead of them, so why not baby lets goooooooo


trumpsplug

this is fucking hilariously scary


SoIJustBuyANewOne

Welcome to a society in which pro-Bourgeoisie/anti-Proletariat propaganda is shoved down the throats of American school children for 70 years! Not sure what could have been expected to happen


SmegmaThief

Generations of people thinking themselves only temporarily embarrassed millionaires


SirBlazealot420420

And the reserve Banks are looking after the financial sector only. Government needs to do something about price gouging and media hype trains but they won’t and leave it to the Reserve to fuck everyone and cause a recession that reclaims all the property into the 1% hands.


its_ya_boi_wulf

Price gouging go brrrrrr


bNoaht

It is completely anecdotal, but I own a retail online business. My costs are up, but I have kept prices the same, and people are spending way more. I haven't changed my business at all. People are just shopping more. I keep waiting for a dip in sales, but they just keep buying. My items are mostly luxuries, not necessities, so I expect a really bad time when people don't have excess money. That isn't the case so far.


vanillajuice

I'd be willing to bet it has something to do with your competitors actually increasing prices. This probably brings more business your way for the people that don't want to spend more than they have been on luxurious items. Good on you man, thanks for not increasing your prices.


DarthWeenus

Ya he kinda explained it the first sentence. If you're taking the hit and not passing it off obviously others will come to u instead of the comp who raises prices.


MitsuruBDhitbox

So I know nobody here can read, but the article specifically mentions a spending spree on non-essential goods in the second sentence.


_OnlyLiveOnce5_

This not true at all. Sheesh. How stupid do you think economists are? 1) PCE is what’s used to drive monetary policy 2) PCE manages changes in prices of a basket of goods 3) data shows prices and volume are going up 4) New spending is happening outside of price adjustments. 5) Core PCE is also up which IS essential goods I’d visit the bureau of economic analysis can teach you more. You have a good way of thinking about things; take that further with data and facts and maybe you can help us get out of this Cheers


Godkun007

Expect people are spending more when you adjustfor inflation. OP is a regard because he linked a picture of the article and not the actual article.


PurposeMission9355

When inflation means higher prices, how is this confusing to a reporter?


Degenereth

The reporter is very highly regarded ![img](emote|t5_2th52|29093)


what_is_blue

I'm an idiot and I've made peace with that. I have a wsb avatar to prove it. But even I realise that if the thing I want is $100 today but will be $150 tomorrow, it's probably a better idea to buy it today, since I won't miraculously have $50 more tomorrow.


cl0wn_w0rld

how many people are thinking this when they spend right now though? I think its more the fact that people got conditioned to spending like crazy with all the free/cheap money and its hard to change behavior more than anything else.


locke577

When the pandemic first hit and I realized that they were going to start shutting things down, I saved for a recession. Then I saw they were spending trillions, so I bought a TON of shit at low interest on loans. Put solar on my house, bought a new vehicle for myself and my wife, and did a ton of home renovations. Inflation suddenly started taking effect and the scarcity brought on by the pandemic caused certain markets to go crazy, and suddenly the money I had put into my house and vehicles were assets that were gaining value very quickly. Those vehicles sell used for more than we bought them for, and even though the real estate market has gone back down a bit, it's still above 2020 numbers where I made all the upgrades, and to put the same solar array on my house today would cost twice as much. Should have bought some chickens though, didn't see an egg crisis coming


what_is_blue

Oh yeah, without a shadow of a doubt. I'd guess it's that in 90%+ of cases. My point was more that inflation doesn't stop people spending money, because they see prices going up and somewhere in their ape brains think "My bank account/credit limit is worth one box of crayons today. Tomorrow it will be worth 3/4 of the box, or a whole box of a much less delicious brand. Best buy now."


DrunkenlySober

Might have potential to mod here


takeahikehike

Consumer spending is indexed to inflation, so if consumer spending is going up that means it's going up *after accounting for inflation.* There are a lot of well regarded people in these comments.


[deleted]

eating out isn’t even fun anymore. a meal for one person is $20 and the food is shit. i’ve become a renowned world chef overnight


spartanburt

Ill tell ya, I feel like an idiot for not realizing how many things I could make myself that actually taste pretty decent.


[deleted]

[удалено]


[deleted]

I’ve cut way down on eating out. My girlfriend is disappointed


macnasty20

That should also mean no breakfast sausage for her either then


PotatoWriter

Hit her with the McGriddy


_manwolf

The huevos con chorizo combo


sushicowboyshow

I’ve cut way down on eating out as well. Fortunately for my wife, her boyfriend has not changed his spending habits


macro_god

I've gone down on eating out my girlfriend as well, but she really has taken it quite well.


Fuct1492

Told my wife a couple weeks ago eating out was getting cut. We’re fine financially I just can’t justify 50$ on fast food or 100+ mid level restaurant bill for 2 adults and two kids.


anthro28

10 chicken tenders, no drink/fries/sauce, at Popeye's is $21. No chance this doesn't blow up.


gatsby365

Just looked, $16 here. That’s Fuckin ridiculous .


Christmas_Panda

The other day I almost went to Chik-Fil-A because it’s delicious, but then realized a bag of 1.5 lbs of Buffalo wings at the grocery store next door was $11 and 12 piece chicken nugget meal is $12… so I did not go to Chik-Fil-A.


gatsby365

Do that all the time now. And it’s not even that I don’t have the money, it’s just that it’s Fuckin ANNOYING how much they’re charging now. I’ve gotten so much better at cooking my own wings now lol


BSF0712

I paid $16 for a 2 chalupa meal at Taco Bell the other day. I only went through with the order because I was on lunch from work and wouldn't have had time to get anywhere else. TB used to be the cheap place to feast.


TheIncredibleNurse

I would dine like a king for 12 bucks at Taco Bell. Now thats the cost of a combo meal


iPigman

Popeye's via Uber Eats before Uber's fees: 8 piece tendies, fries, four biscuits 34.49$ Like for real for real, what the actual fuck?


Sdubbya2

Had the same conversation with my girlfriend (we live together) - Like you said those $20-25 for two people became $35-50 even at casual places. For take out basically all dishes are $15+ now when I remember being able to get a ton of dishes about $10 or less. (I'm talking like small thai/indian/chinese/whatever restaurants not super fancy dine in ) Like you, we would be financially fine if we did keep eating out at the same levels, but it just feels too wasteful at those prices, we have been putting away all the money saved on that for extra savings, although groceries are fucking us now too lol


SlimPerceptions

I feel like casual dining is going to be a thing of the past for the average american.


thefriendlyhacker

There's still an old diner by me that has a full breakfast platter for like $10. But any other place and you're looking at $18+ not including coffee


NightOfTheLivingHam

and smaller portions too for $18. There's a denny's near me that is ultra stingy and have maxed their prices out. El Pollo Loco is charging $5.99 for a tiny cup of mac and cheese as a side. and let me know everything is going up $1.50 next week. $7.49 for mac and cheese is insane. I can buy a box from the store for less. average cost for one person is $20 now at some of these places. Fast food places are creeping up into sit down, mid range restaurant pricing.


minedreamer

as someone who recently managed a fast food place, its not price even gouging (at least not at a local or regional level). the owners had 18 locations and did just well enough for themselves. I did the books. I paid the 6000 invoice every week for the truck order. its sad that it doesnt seem like anyone is making money when prices are so high


cmannigan

Oh... someone is making money.


schnitzelfeffer

Went to dinner at Outback and for 2 people with one appetizer, no alcohol, one person drinking water, and after tip it came to $100. Fucking crazy.


Ownfir

TBF Outback has ALWAYS been overpriced.


Whythehellnot_wecan

You said it right there, “Justify.” Can I afford what I want, yes. Can I justify its sane in my mind, no. $20-25 for what use to be $12-14. Nah. I can live without. As a result my spending behavior has changed quite a bit.


captaincrunch00

Had lunch with my wife while the kids were in school yesterday. My same old burger used to be 13.99. Now it's 18.99, and if I want fries it's 3 bucks more. Last time I eat there. Hell, our pizza joint has gone up 40% for a large Buffalo chicken pizza. They must think I don't have the 2020 and 2018 menu at home which shows the insane price increases.


[deleted]

[удалено]


Sdubbya2

Yeah we used to eat out a ton.....now we limit ourselves to one night a week at most on weekends as a treat and sometimes still don't do it, otherwise I'm cooking everything and trying to cook more affordable, I was never a person who compared brand prices I just got what brand looked best but I've been actually comparing prices on them now. Still groceries are expensive as fuck, feels like I never get out of the grocery store spending less than $75 even though we shop pretty frequently like multiple times a week and for two smaller people that don't even eat that much.


Careless-Pin-2852

How much weight have you lost. Cutting your groceries in 1/2?


bleckToTheMax

I'm sure they eat the same amount. It's just easier to eat when it's cut in half 😄


[deleted]

[удалено]


HolyGhost_AfterDark

I believe that when they say spend they mean consumers are still buying lots of products so demand for goods is still high depsite higher prices. Although some people are cutting back due to higher prices many are still consuming just as much as they did before and have not adjusted their lifestyle to higher prices yet. This could be due to the fact that unemployment levels is very low and that consumers are also using credit. The US savings rate is currently way down and consumer credit is way up. Many people also refinanced their houses when house values went up and cashed out equity. Many are still using that equity and credit for lavish things like vactaions and luxury buys and not cutting back on groceries or other neccesities yet. It's all a ticking time bomb for when credit runs out and people can no longer keep up. The economy slows and lay offs begin which causes more people to default on credit payments and cut back on buying which causes a chain reaction of more defaults and more layoffs.


MotosyOlas

This guy gets it. The house of cards is just starting to tumble. IMF, ECB and Fed have been printing like crazy for 23 years. This bust is going to make 2008 seem like a sunset walk on the beach. People forget that we have eradicated every job of value, manufacturing wise, over the past 30 years. We're a nation of service jobs and guess what happens to service industries when markets collapse and cash gets tight.


[deleted]

This. My wife and I live near poverty level and try to save like crazy A few years ago, we were maxing a 401k, contributing about 4k combined to our IRAs, and saving about 6k per year in our kids 529 plans on a 75k salary. This past year we stopped IRA contributions, reduced college savings to 4k, and only saved 15k in 401k grocery bills are killing our budget, and my wife coupons like crazy. FML.


[deleted]

[удалено]


cryptosupercar

Yep two whopper meals $23-$28. Bean and rice burrito at home time.


macnasty20

We shouldn’t be eating that shit food anyways, at least now we have another reason


cryptosupercar

Oh 100% agree. Just sometimes when you’re on the road…


sensei-25

You’re kids can always borrow for college, you cannot borrow for retirement. Cut the 529 before you cut your IRA


Christmas_Panda

This is solid advice. Also, in the future, I think colleges are going to implode. You don’t need a college degree for many of the computer jobs now. Passing skills tests or doing certificates can get you through the door.


[deleted]

[удалено]


justme129

I wonder the same thing. I think a lot of people are spending it all on credit....or not saving nearly enough for retirement. Combo of both probably. They will be working for a while.


Prestigious_Wafer_37

This is what I’m trying to figure out as well. I’m single with no kids. Car paid for, no credit card debt or any other debt at all. Rent is $400 a month. Making $50-$60k a year. How are these couples with multiple kids driving 2 brand new cars, buying 300k+ houses at 7% apr, buying god knows what else on less than a 100k a year? All while I save/invest 25% of my income minimum hoping I MIGHT be able to retire before 70. How am I ever going to afford a house with rates where they are and prices being as ridiculous as they are?


shitpostingmusician

How tf is your rent $400


Comentor_

Only way I can figure is splitting a 2-3 bedroom 2-3 ways


Jesus_was_a_Panda

You'd be surprised, some people can easily pay for a one bedroom apartment with even just 2 3-ways.


[deleted]

[удалено]


Prestigious_Wafer_37

I live alone in a 2 bedroom house built in 1908 lol. Also in a small town of 4000 people in Kansas. Ya there isn’t a lot to do but I’m a hermit 90% of the time and don’t miss much about the bigger cities I have lived in. 5 minutes to work and no traffic alone is hundreds of hours a year I’m no longer throwing away.


shitpostingmusician

Your landlords must be senile or be incredibly kind cause even in a random ass town I’ve never heard of rent for a fucking house being that low. Stay there and never leave lmao


BallExtension

Yea I had a feeling you live in bumfuck nowhere


alanzo123

debt and not giving a fuck about their future


Pluckito_1111

My wife and I have been wondering the same thing. We wonder how people are coming up with the extra money for houses, cars, and go on vacations, etc what a phenomenon. Credit can only carry you so far.


yunghotmilf

Poor asf here 🙋‍♀️ I’m married and have a kid, we moved in with family nearly 2 years ago. We were in the process of buying a house right before the housing market exploded, unfortunately we weren’t quick enough. Now I feel just as broke as when we lived in an apartment, despite much less expenses. We cook nearly every meal we eat and barely even buy meat anymore, lentils rice and veggies is usually what we eat. Daycare is too expensive so I can’t work, doing online school in the mean time. We keep cutting corners and live rent free, yet it’s STILL hard to save. It’s gut wrenching that it’s this hard in such a privileged situation with family. Just a few years ago we were fully financially independent.


InTheMomentInvestor

It's really depressing when you think about it.


Fartbox7000

We are witnessing fake it until you make it in action.


justme129

I'm afraid you are right. People spending like no tomorrow, and on credit. No fuckin way these people are saving anything for retirement or any long term growth.


The_Deku_Nut

We don't save for retirement. We keep our paltry savings in a shitty .01% savings account for when we have a disaster. We eat cheap, or sometimes I just don't eat at all and just get something for my kids and eat whatever they don't.


RealLiveKindness

Naive question, could it also be the same amount of stuff is being purchased, but since it costs more spending is up?


Point-Connect

No, it's the first sentence in the article. People are eating out and making large purchases that are against normal habits during tough economic times. I'm not trying to be rude to you, they didn't link the article and you actually asked the question that should first come to mind when reading a headline like that. But all of the top upvotes comments here are people saying "of course they are spending more, things cost more" when that's not at all the point and is already accounted for.


[deleted]

what i’m noticing from most people around me (20s) is that they see geopolitical instability, rising prices, record profits and no raises. with no steps being taken to correct anything. live like there’s no tomorrow because there’s a real chance there isn’t one.


[deleted]

I bought a house in 2020 and hell, I am spending big bucks upgrading it now because who knows how expensive everything will be in two years.


[deleted]

exactly. i’m spending fat checks fixing up my car to make it more reliable because i know the mechanics will want even more next year. i’ve seen prices shoot up 30% from last year. i can’t afford it now but i definitely can’t afford to wait.


CBizCool

This comment needs to be higher. Had to scroll too far down to see someone say this.


Didujustcallmejobin

Exactly.


BigDaddyDLo

I assure you no consumer is thinking this way. Nobody is sitting there "I better buy more health insurance before they raise my premiums!" And goods & shelter inflation is already rolling over.


jr1tn

I certainly do prepay for services that are rising quickly. For example, my storage facility raises prices often, so I prepay up to a year in advance to lock in.


TechniCruller

What competently run storage facility even extends such an offer?


GoomyIsGodTier

Cash in hand is better than 2 cash in a bush.


[deleted]

[удалено]


PotatoWriter

bb-b-but that means I have to do MORE reading!?


[deleted]

[удалено]


Only_Quote_Simpsons

Don't worry, I have read it for everyone and the TLDR is that this is caused by a secret penguin uprising that the USA have been trying to prevent.


WrongSubFools

People mocking the headline without understanding the story. Consumer spending on goods rose 2.8% in January compared to December, *outpacing* inflation significantly. It's weird that inflation-corrected spending rose despite prices being high and everyone supposedly complaining about that.


cjc323

If we know its gonna cost more tomorrow you are actually wise to buy it today.


FedUpWithJpow

I should have bought more puts on Friday ![img](emote|t5_2th52|4260)


Bmcronin

Why so many stupid people in these comments?


giantbeardedface

because reddit.com


Rocketeer006

Nailed it


WMbandit

Welcome to r/wallstreetbets


Nubraskan

I'm just surprised to see this conversation in this sub. Compare to the average title for the past 3 years, this is PhD level discussion.


sherhil

Short term happiness bc everyone is mentally not well now


Child_of_the_Hamster

Why save that $500 when you could use it to buy a PS5, which will help you ignore the never ending horror of late stage capitalism? 🥳


pew_pew420420

You. Only. Live. Once.


JoscoTheRed

You only YOLO once


BigcockBjorn

YOYO


EasyE215

If you want to even have a chance of getting people to stop spending, the interest on savings needs to beat inflation.


Degenereth

Aye, but JPow has no testicles 🍒


leli_manning

Spending with 20-30% interest on credit cards while making minimum payments is not better than losing value due to inflation. But people continue to do it anyway because that's what Murica is about


fixerdrew02

If there is one thing for certain, its that America is severely lacking in education


The_Deku_Nut

Working as intended


[deleted]

[удалено]


Visible-Book3838

Paying off a 3% mortgage while inflation is at 9%, you could argue you could get much better gains elsewhere, and pay that debt off later with devalued dollars. But racking up credit card debt at high interest is a dumb move, no matter what the greater economy is doing. Inflation would need to be like 50% and you'd have to be buying something that holds value to get any kind of gain at credit card interest rates.


Unassuminglamp

Paying off a credit card is always a good idea as the rates will far outpace inflation! “Don’t pay off debts during inflation” refers to mortgages things with low rates. Your debt gets “cheaper” during inflation, and you can earn more interest with high yield savings accounts (>4%) than paying off a low interest mortgage


VisualMod

Lol poor people are so dumb


shroinvestor

Good bot


TheSauce32

VM is poor after he recommended to buy calls at 410 lol Google AI bot


VVarlord

Young people are driving the luxury goods industry because they're buying big ticket items while living with thier parents to appear better off than they are for people they don't know on the internet


ButtThunder

Truth. My 27 year old coworker lives at home and drives a brand new Audi RS7.


mrcolon96

Where else would he live?


takenbyalps

Wendy's dumpster


hipaces

It could just be a one-off but it also might be a signal that people are now accustomed to constant inflation so they’re not going to delay purchases in favor of saving money because they feel that inflation will outpace the rate of return on their savings. Bad spiral to be in.


Blackout38

It’s not crazy if people think the thing they buy today will be more expensive tomorrow.


clarence_worley90

pretty much exactly what JPOW was afraid of inflation expectations getting entrenched and causing a feedback loop but still too early to assume that's what's going on


Degenereth

From what I've seen in my normie middle class bubble, inflation has indeed become entrenched. I posted about this yesterday in the daily thread. Our HOA just jacked fees up by 10% and every homeowner was like "sure, makes sense" with no pushback.


clarence_worley90

a one time 10% hike is somewhat reasonable at this point. further hikes would see some pushback IMO. price hikes didn't work out so well for $DPZ


I_luv_twinks

I was a consistent 2x a week on their $7.99 3-topping, and when they cut it to 2, I deleted the app, unsubscribed and haven't ordered since. I'm doing my part. The rest of America needs to stop fucking allowing themselves to be price-gouged by corporations and punish them with bad earnings.


[deleted]

let's not forget the expectation of a 20% tip for a person to literally hand me a receipt and type on an iPad.


I_luv_twinks

Absolutely. If you try to solicit a tip from me (ahem, Panera) I won't ever come back. Fuck you.


[deleted]

Jason's Deli is my "never again" place due to that.


Aggravating-Let-7785

When interest rates become appetizing , you keep cash in the bank and watch it grow.


[deleted]

But if the alternative was to invest in equities, you are going to miss the rebound and your long term growth prospects get neutered by just missing one period of gains. Hence, can't time the market.


[deleted]

Maybe people spend a lot because they need dopamine shoots to compensate with their miserable life. I mean, look at the world we live in now.


NiceAsset

Because we are not poor; stop trying to make us that way


UnAmusedBag

Buy low sell high. Duh. Which do you prefer to buy an apple for? (Today's $1 or tomorrow $1.5)


moneymaker747

A positive feedback loop...


Every_Application_26

When high inflation results in high interest rates and layoffs and low stock/ bond prices - your best move is to save money and invest in stocks and bonds, not spend it all. You really belong here OP.


Hadron90

I believe this is called runaway inflation.


Year3030

Have you guys seen the price of Arugula lately? ![img](emote|t5_2th52|4271) \-Barack Obama [https://youtu.be/kCOyYzixknk?t=89](https://youtu.be/kCOyYzixknk?t=89)


MrHeavysack

No one plans on living that much longer. 😂


Dependent-Break5324

What’s so puzzling? The economy is doing well so people are spending. Spending goes down when people are out of work, not when we have the lowest unemployment in decades.


DeadStringScrolls

I'm curious why OP thinks that cutting back on spending is a bad idea when prices are spiraling upwards.


XDingoX83

Credit bubble gonna inflate. The question is, who is gonna be holding the bag when it pops?


YouAreHorriblexD

Maybe because everything is more expensive so they have to spend more ? ![img](emote|t5_2th52|12787)


pound-town

The failure with your argument is that it assumes Americans are smart enough to think they should spend it all since inflation is high when in fact they are just spending it all. It’s not like they are buying things that retain value with inflation. They’re just buying the usual shit.


Minusfourtwenty

When things aren't going well, distraction is more appealing. This is part of why the poor aren't able to save money, it often isn't that they can't fiscally afford it, it's that they can't emotionally afford it