Despite good unemployment and inflation numbers, sentiment on the US economy is currently very negative. Paul Krugman addressed this in his recent post.
It is hard to explain why people are so very negative right now. However, there are signs that people are struggling with debt. Interest rates are at the highest levels in twenty years.
New York Fed data shows that serious delinquencies on credit cards, student loans and auto loans are surging. Credit card delinquencies are back to levels last seen in the aftermath of the 2008 financial crisis.
Meanwhile, after tax income for most groups is barely keeping pace with inflation, while real incomes for the lowest paid are falling.
Also, housing is a large part of most Americans net worth, and real median house prices are falling.
Meanwhile, the stock market is up 48% in real terms over the past two years, so the wealthy are still doing very well.
