This Is What Consumers 'Always' Do Before a Recession

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#financement

American consumers just did two things that you might think are completely incompatible.

In August, they cut revolving credit at the same time, consumers added a huge amount of non-revolving credit. So households backed away from credit cards while splurging on installment debt. How can consumers be terrified of borrowing and eager to borrow at exactly the same time?

Because these aren’t contradictory behaviors.

Eurodollar University's Money & Macro Analysis