The squeeze is on and some turn in consumer behavior (and patience) has begun. IMO, an inflation style breaking-point is imminent.
Here’s the link to CNBC’s news article:
As I’ve been saying for a couple of months, the consumer is starting to crack!
byu/PhaseP38 inwallstreetbets
Posted by PhaseP38
34 Comments
Great points. I’ll keep buying calls
Without a doubt inflation is an ongoing problem. But so is fast food. They blew up their prices to about the same as a sit down restaurant in many cases counting on consumers to pay the premium for convenience. But guess what? People opt for those conveniences less.
Some good news. Walmart, Target, etc. are starting to lower prices because they figured out you can only squeeze so much.
My wife and I are wealthier than we’ve ever been and more frugal. I won’t pay these outrageous prices anymore. We buy the bare necessities and that’s it.
As I said since years. Inflation will remain but economy weakens. The wurst.
It’s ok they can just rig the inflation calcs forever
The rise in CC debt was a sign, eventually people run out of credit and that is not good.
Yeah I know. Just had to cancel 2 of my porn subscriptions
Totally agree, the signs have been there for a while. With interest rates rising and consumer debt hitting record highs, it’s no surprise that people are starting to feel the squeeze. Companies better brace for a shift in spending habits. Anyone else thinking about repositioning their portfolio to hedge against this?
Credit card delinquency is rising, it’s over pre-pandemic levels, but not like 2007 (yet)
[https://fred.stlouisfed.org/series/DRCCLACBS](https://fred.stlouisfed.org/series/DRCCLACBS)
broken clocks are right twice a day
I agree
Well fuck the broke o’clock is right twice a day.. keep saying it, some day you gonna be right
Its a bull marker you know.
as much I can believe this article is true, the local fast food restaurants in Dallas seem busier than ever before. Same goes for the Target, Kroger, and local shopping mall… If there’s some truth to this article, I can’t see it, at least here in Dallas.
Low income people were always affected by high inflation and those were the ones going to McDonalds. The “issue“ is that those are not the ones that drive consumer spending, that’s the middle class and the wealthy people. Those have not been affected that much. Just look at Chipotle, Texas Roadhouse or Cava earnings.
So yes consumers are cracking but not the consumers that are relevant for economic statistics. Let’s at least wait for the next quarter earnings before we start bringing up the same stories from months ago.
Heres where theyre messing up. I use to pay for 5 streaming services(hulu, max, peacock, google, prime), i use to be a somewhat consistent customer at subway, starbucks, and a bunch of other fast food places.
I just finished building a plex server with 4tb of movies and tv shows. I canceled hulu, max, and peacock. Im an above average earner but they have low level content and charging a premium. Im not gonna put up with it and now that i have everything set up, im not coming back.
I drive between multiple jobs a day so i have a large selection of where i get breakfast, lunch, and dinner. Subway and starbucks use to be a favorite but i got hit with a $20 charge for a foot long sub and pretzel. Im not going back and starbucks is now only gonna be a once in a while treat. I use to get a chai tea every single day from them. Now i might go back once every 4-6 months but im gonna make an effort for a local coffe shop.
These are just a couple examples of where im focusing my money as a consumer. At the end of the day, im not a number on a spread sheet. I feel my relationship with corporations is a living, breathing thing. If i dont feel any compassion, if ads are shoved down my throat 24/7, or you put a service that was once normal behind a subscription. Im gone.
Edit: google and prime were an exchange with my aunt for netflix. I was using tailscale to vpn into her house, that got annoying. Shes probably gonna cancel netflix once i get her set up on plex.
Prices are only coming down with deflation. Inflation is compounding, so even 2% inflation is still a lot because its 2% of a fuckton of other numbers.
I started to learn how to coupon and stopped eating out. I make 6 figures but need to save for a downpayment
Working from home full time means I rarely buy anything out anymore, no temptations, nothing to see.. I’ve never had so much money since Covid to be honest. I don’t need to spend on transport, eat out at work anymore and buy random stuff.
Life is better than it’s ever been. I’m thriving in this economy. Working from home has changed everything and saved a fuck ton of dough from the society norms.
Lots of great (and a bit of less so) feedback, thanks everyone! The remainder of 2024 and transition into next year will surely be interesting. Stay frugal(ish) and always keep investing long-term. 💪
I agree but take a trip to r/economics and you will find endless articles on how great the economy is doing.
Lunch/dinner increased 40% in 3 years. On average in NYC.
I got a 2% raise this yeae
I’m seeing multiple posts on Nextdoor about beggars begging for money everywhere including walking through the chick-fil-a line. Had a relative go to BJs and Giant one after the other and be approached in-store for money. This has never happened to this degree in this small town despite years ago having a “tent city” (maybe 50-100 people living in tents years after ’08) behind the Walmart.
Shit feels like it’s going to hit the fan soon.
Got em
Or, hear me out, the consumer is starting to get irritated with this price gouging and instead, spending their money either at local places that didn’t go out of their way to fuck them over or started making meals at home.
I saw my favorite Chinese restaurant in Austin go from $8 to $22 a lunch during covid. After covid they kept the higher price. Number of customers dramatically dropped last year. I think they almost folded.
Now they have lowered the prices to $16 and also offer $12 lunch options with about 20 varieties. I know I go there more often again.
I went to trade back my 2021 bmw X5, asked for a new one and they quoted me £1200 a month. I was paying 700. Thats more than my mortgage and 2nd property combined. Also, insurance doubled that year so decided to just not replace it. Ive got more money than before but no way im being fisted by these prices.
Thank you ghandi
500k household and we just said no more weeknight dinners after a garbage meal and a $209 bill for us and two kids at a “family” resturant.
We wont pay the prices at restaurants anymore, it’s changed us for the better, now we are just used to living this way. I see a lot of restaurants failing.
Lmao pizzahut here in Belgium offered “Buy 1 medium pizza, take 3 medium pizza’s.”
This is the most insightful part of the whole article for me:
> _’In major markets like California, where the minimum wage for fast-food workers is now $20″_
I had no idea about this.
I don’t believe it. Flights and hotels are as full as I’ve ever seen. Every jackwagon pays for Clear/TSA-precheck. Business class is almost always full (not including free upgrades), expensive cars are more prevalent than ever, etc.