Credit card balances are actually down nationally. In my world I see people buckling down and living more simply. They have jobs, savings and intact retirement accounts. The last few years were a wake up call for everyone. Its no longer about bigger and better everything. Its now about living within your means, security and spending more time with family.
Prices have been flat to down on most things resulting in “real” deflation. Relatively stable nominal prices going forward will continue resulting in more “real”: deflation but little nominal inflation. In the next 3 to 5 years we will see wage inflation and soon enough we will be back in balance. A little of this and a little of that. The gov’t and bulls will claim victory despite “real” declines in home prices of greater than 50% while bears cry they didnt get enough. Just another bearish view but far less so.
