Did somebody say the economy can go on forever like this? I think Hipster says that. We’ll see. Debt has been a stopgap since the 1970’s, when wages stopped increasing but inflation did not stop. What gets me is that people were like the boiled frog. THey just “put it on the card” and went along like before, rather than saying, “Wait, what? I have to scale down my spending rather than get in debt.” If everyone had scaled down their spending, it would have stopped inflation in its tracks, because hot money would be chasing someone to borrow it, money becomes worth more relative to goods.
We have been warning for years that as a result of the Fed’s disastrous policies, America’s middle class is being disintegrated and US adults are surviving only thanks to insurmountable debtloads. But not even we had an appreciation of how serious the problem truly was. We now know, and it is a shocker: according to new research by the Urban Institute, about 77 million Americans have a debt in collections.
In 12 states, including the District of Columbia, more than 40 percent of residents with a credit file have a bill in collections. That includes Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, New Mexico, North Carolina, South Carolina, Texas, and West Virginia.
With incomes lagging and poor impulse control among nonwhites, their debts will rise…
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