Middle Class Death Spiral: Consumers Have Never Been In More Debt, And Bankruptcies Are Surging

The cost of living has risen much faster than wages have, and as a result hard working families all over America are being stretched financially like never before. Even though most of us are working, 59 percent of all Americans are currently living paycheck to paycheck, and almost 50 million Americans are living in poverty. In a desperate attempt to continue their middle class lifestyles, many Americans have been piling up mountains of debt, and it has gotten to the point where we have a major crisis on our hands.READ...AND...

This is the exact opposite of what U.S. consumers should be doing. We can see signs of a fresh economic slowdown all around us, and consumers should be feverishly trying to get out of debt as fast as they can.READ...AND...

Unfortunately, this is probably just the beginning.

Right now, most of the country is living on the edge financially, and so a major economic slowdown would inevitably cause another enormous tsunami of consumer bankruptcies like we saw in 2008.

Even now, things are already so bad that many hard working “middle class” workers in high-cost cities such as New York are so financially stretched that they have to rely on free food from local food banks…

U.S. consumers simply do not have a lot of discretionary income to spend these days, and this is killing major retailers all over the nation. We are on pace to absolutely shatter the all-time record for store closings in a single year, and within the past 7 days more big retailers have announced that they will be permanently shutting down stores.READ...AND...

I honestly don’t know what malls and shopping centers all over the U.S. are going to do. I once warned of a future in which America’s landscape would be littered with abandoned stores, and that future has now arrived.

For the moment, those at the very top of the economic pyramid are still doing okay, but the middle class is eroding a little bit more with each passing day. For much more on this, I would encourage you to check out this Youtube video by Jeremiah Babe.
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