Consumer spending powers the economy, making up 68% of GDP here in the US.
And, like it or not, much of that consumer spending is funded by debt — credit cards, mortgages, auto loans, etc.
But rising interest rates are now starting to make the cost of that debt more expensive.
That trend, combined with increases in the cost of living caused by today’s spiking inflation, is pinching folks’ ability to borrow and spend.
We’re seeing more and more signs that the consumer is starting to tap out.
And should that happen, the risk of recession grows substantially.
To understand why & what to do about it, watch this new 12-minute explainer video.