The “Millennial” debt situation isn’t good for all sorts of reasons. Debt drives people to desperation sometimes. When people get desperate they go nuts. When a recession comes and hits the “Millennials” right between the eyes they are going to cry bloody murder. They aren’t going to know what to do. They are going to blame everyone but themselves for their servitude. And they will look to someone to save them from themselves and from “evil” “capitalism.”
This even though the debt driven boom/bust regime we’ve existed in for over a century is enabled and exacerbated not by real capitalism, but by centrally planned, Federal Reserve manipulated crony capitalism. But people have been told that we have a capitalist system.
We have a highly regulated, crony dominated, overly taxed system that does not allow for the free movement of prices. Because prices are not allowed to move, economic calamities are regular occurrences.
This economic regulation doesn’t MITIGATE the business cycle. It EXACERBATES the booms and the busts.
But don’t worry I am sure the Fed will be happy to “save” us.
When the next recession hits a lot of people are going to freak out because of their debt. Might as well get prepared now. Think about how many people seem prone to freaking out about everything NOW.
According to NBC News/GenForward survey, the most common form of debt for 18-to 34-year-old Americans is credit card debt. Approximately, 75 percent of the millennial cohort have financial obligations, and they are ‘pausing major life events’ because they are too broke, the report noted.
A quarter of millennials have racked up over $30,000 in bills, including 11 percent who have over $100,000 in debt. Shockingly, only 22 percent of millennials are debt free.
As a result of all this madness, savings is not hip with the millennials, which has limited their economic mobility and left many unprepared for the next financial disaster.
In a Central Bank boom/bust economy, each generation throughout the past century has experienced some form of deleveraging.
What happens next, well, you guessed it — millennials could be the next generation to feel the wrath of natural selection through a deleveraging period, as it all depends on when the next recession strikes.