What if the situation we see today is the new financial reality? What if Americans will no longer use credit card debt to fuel the global economy?
Overspending on credit lines was probably supported by ever increasing house prices. But what if house prices stop going up and start going down as is happening today? You no longer take risks with debt and stop spending money you don’t have.
The US housing market has burnt a lot of people, salaries are growing, so house prices aren’t going to grow. Therefore, don’t expect the US consumer to start spending any time soon. Once bitten, twice shy.
This is the new reality.