Congratulations, it has been ten years since the start of the Great Recession. Ready to party like it is 2006? There are similarities: stock market is up, unemployment is down, interest rates are low. There are other similarities: housing is rising faster than wages, debt is larger now than then;
“…incomes have only grown modestly and, as our research shows, average American households have 6 percent to 7 percent less spending power than they did a decade ago, before the global financial system collapsed.” – The Conversation
Student loans plus credit cards are 41% higher now than then. As expenses grow faster than incomes, many people go into debt to maintain their lifestyle, or at least to moderate a retreat from comfort levels. Unfortunately, such a financial imbalance eventually leads to significant actions: severe retraction in spending habits, riskier debt, and foreclosures and bankruptcies. Maybe this time is different. Maybe.