Consumer spending is likely to become much more dependent on jobs and confidence by the third quarter, ... If labor markets have not turned, boosting confidence by then, the risk of a significant slowing in consumer spending will be very high.
More Quotes from Scott Hoyt:
Low interest rates and rampant house price appreciation have really been driving borrowing. As long-term rates finally start to rise, the pace of debt accumulation will slow.Scott Hoyt
People feel rich because of their real estate. If they can meet their wealth accumulation goals just by watching their houses appreciate, why save
Scott Hoyt
The raises in interest rates will reduce the willingness and ability of consumers to continue their pace of borrowing. This is both directly -- through the cost of debt -- and indirectly -- because it's likely to slow house price appreciation.
Scott Hoyt
It just suggests that consumers, particularly lower-end consumers, are going to be more stretched when these loans reset, with potentially negative implications for spending growth.
Scott Hoyt
For lower-income folks who would have financed the purchase anyway, it's saving them money. And for higher-income folks, why not
Scott Hoyt
We're assuming January was all about the weather.
Scott Hoyt
Readers Who Like This Quotation Also Like:
Based on Topics: Danger & Risk QuotesMy fake Japanese was smooth enough to earn me the title of 'The Emperor of Pleasing Graciousness' in that country.
Wolfman Jack
Think first of the action that is right to take, think later about coping with one's fears.
Barbara Deming
I've never seen a monument erected to a pessimist.
Will Harvey