Cracks emerge in US consumer resilience
The guest argued that US consumer spending is becoming increasingly fragile as real disposable income turns negative and savings rates remain very low.
The argument
Despite resilient headline consumption, slowing labor income and negative real wages—especially when accounting for recent gas price increases—are creating an uncomfortable environment for the consumer.
The thesis, stress-tested
✓ What validates it
- ✓Further declines in real disposable income in upcoming monthly reports
- ✓Rising credit card delinquency rates at major banks like Citigroup
▸ Risks discussed
- ▸A sudden rebound in real wage growth
- ▸Consumer confidence indexes recovering from current lows
Hear it yourself
"The major debate, Zero Hedge, with a wonderful summary today of tokens with all this AI stuff like GitHub has blown up on June 1 because all of a sudden expensive to use it. Are they gonna be perfectly competitive? Are we gonna have a AI microeconomics where the market tells the bro what to do? I think you're seeing some of that already. I think that the market pricing is affecting what businesses are doing. There is a massive feedback loop here in a way that I don't think you had in 1999. I agree strongly. Yeah. There's something minute by minute going on. There's a phone call right now being made That's right."
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE