Consumer Credit in America: Winding Up The Big “No Joy” Buzzer
I recently read a piece in The New York Times, (linked at SHTF Daily) titled Somehow the Spending Doesn’t Stop. The author made some astute observations on consumer spending. But he didn’t go on to analyze some underlying phenomena. I have observed that here was a subtle yet profound shift in the psychology of indebtedness that took place in the late 1990 and early Aughts: Somehow the average American gradually stopped thinking about the total amount that he owes his creditors, and instead started focusing on his minimum monthly payment. Consequently, consumer spending soared. For more than a decade, Americans …