{"id":10167,"date":"2014-06-27T18:43:59","date_gmt":"2014-06-27T22:43:59","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=10167"},"modified":"2014-06-27T18:43:59","modified_gmt":"2014-06-27T22:43:59","slug":"middle-class-is-drowning-in-debt-hobbling-the-economy-rex-nutting","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2014\/06\/27\/middle-class-is-drowning-in-debt-hobbling-the-economy-rex-nutting\/","title":{"rendered":"Middle class is drowning in debt, hobbling the economy | Rex Nutting"},"content":{"rendered":"<p>From Rex Nutting at MarketWatch:<\/p>\n<blockquote>\n<p>For decades, economic growth in America was driven by a powerful and sustainable force: increased consumption paid for by the rising incomes for middle-class and working-class Americans.<\/p>\n<p>But somewhere around 1980, that model broke down. Wages flattened out, but consumption didn\u2019t. Americans cut back on their savings, and took on more debt \u2014 mostly mortgage debt \u2014 to satisfy their needs and desires.<\/p>\n<p>It\u2019s not a sustainable model, but it did persist for nearly 30 years until the credit bubble burst in 2007. Millions of Americans lost their jobs, and millions lost their homes when the credit spigot was shut off, forcing average families to cut back on their consumption and live within their means once again.<\/p>\n<p>And now, with the economy only partially healed, it seems we\u2019re going back to the lend-and-spend economy that failed us before.For the past six or seven years, most of what the Federal Reserve has done to fix the problem has been focused on getting the credit spigot turned back on: cutting interest rates and hectoring banks to start lending again, even though demand for loans was weak&#8230;.<\/p>\n<\/blockquote>\n<p>Read more at <a href='http:\/\/www.marketwatch.com\/story\/story?guid=041258f6-fd53-11e3-a77d-00212803fad6'>Middle class is drowning in debt, hobbling the economy &#8211; Rex Nutting &#8211; MarketWatch<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>From Rex Nutting at MarketWatch: For decades, economic growth in America was driven by a powerful and sustainable force: increased consumption paid for by the rising incomes for middle-class and working-class Americans. But somewhere around 1980, that model broke down. Wages flattened out, but consumption didn\u2019t. Americans cut back on their savings, and took on &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2014\/06\/27\/middle-class-is-drowning-in-debt-hobbling-the-economy-rex-nutting\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Middle class is drowning in debt, hobbling the economy | Rex Nutting&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31,45,34],"tags":[870,1565,2301,2646],"class_list":["post-10167","post","type-post","status-publish","format-standard","hentry","category-the-fed-banks-interest-rates","category-debt-levels","category-us-canada-countries-regions","tag-credit-bubble","tag-global-financial-crisis","tag-middle-class","tag-personal-debt"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Middle class is drowning in debt, hobbling the economy | Rex Nutting - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Middle class is drowning in debt, hobbling the economy | Rex Nutting - the patient investor\" \/>\n<meta property=\"og:description\" content=\"From Rex Nutting at MarketWatch: For decades, economic growth in America was driven by a powerful and sustainable force: increased consumption paid for by the rising incomes for middle-class and working-class Americans. But somewhere around 1980, that model broke down. Wages flattened out, but consumption didn\u2019t. 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But somewhere around 1980, that model broke down. Wages flattened out, but consumption didn\u2019t. Americans cut back on\u2026","rel":"","context":"In &quot;Market Insights&quot;","block_context":{"text":"Market Insights","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/market-insights\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10939,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/21\/amir-sufi-who-is-the-economy-working-for-the-impact-of-rising-inequality-on-the-american-economy\/","url_meta":{"origin":10167,"position":1},"title":"Amir Sufi: Who is the Economy Working For? The Impact of Rising Inequality on the American Economy","author":"ColinTwiggs","date":"September 21, 2014","format":false,"excerpt":"Amir Sufi, professor of Finance at the University of Chicago, testified before the U.S. Senate Committee on Banking, Housing and Urban Affairs Subcommittee on Economic Policy. 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The Impact of Rising Inequality on the American Economy\u201d makes interesting reading. \"Only 76% of\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Credit and Disposable Income","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-09-22-credit-income.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-09-22-credit-income.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-09-22-credit-income.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":6979,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/03\/14\/expanding-debt-dousing-the-flames-with-gasoline\/","url_meta":{"origin":10167,"position":2},"title":"Expanding debt: Dousing the flames with gasoline","author":"Colin Twiggs","date":"March 14, 2013","format":false,"excerpt":"We are now in the fifth year of recovery from the worst financial crisis in 50 years -- fueled by expanding household debt, rising from 50% of GDP in the 1980s to close to 100% in 2008. Contraction since the GFC has brought US household debt back to 80% of\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":19880,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/03\/07\/australia-the-bear-case\/","url_meta":{"origin":10167,"position":3},"title":"Australia: The bear case","author":"Colin Twiggs","date":"March 7, 2020","format":false,"excerpt":"The RBA cut the cash rate by 25 basis points on Wednesday this week, to a record low of 0.50%. This was necessary in order to limit the interest rate differential with the US and protect the currency. But it will not do much to help the economy. Household debt\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":26571,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/06\/30\/china-retail-sales-and-credit-contraction\/","url_meta":{"origin":10167,"position":4},"title":"China retail sales and credit contraction","author":"Colin Twiggs","date":"June 30, 2021","format":false,"excerpt":"Chinese retail sales are falling as credit tightens. Leland Miller at China Beige Book: \"It is hard for people to understand how hard China is squeezing credit.....Parts of the economy are going well but for any durable recovery you need consumption to come back, you need retail and services back.....\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15672,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/08\/04\/australia-housing-incomes-growth\/","url_meta":{"origin":10167,"position":5},"title":"Australia: Housing, Incomes &#038; Growth","author":"ColinTwiggs","date":"August 4, 2017","format":false,"excerpt":"A quick snapshot of the Australian economy from the latest RBA chart pack. Disposable income growth has declined to almost zero and consumption is likely to follow. Else Savings will be depleted. Residential building approvals are slowing, most noticeably in apartments, reflecting an oversupply. 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