Expert sounds alarm on U.S. consumer spending

The U.S. economy goes by strategy of a prime crimson flag: the massive majority of Individuals merely can’t maintain the funds for to exhaust. George Seay, founder & chairman of Annandale Capital, joined TheStreet to exclaim about this bearing on trend and its potential affect on the economy.

Related: Macy’s sounds yet one other apprehension on client spending

Fat Video Transcript Below:

GEORGE SEAY: I think we should worry referring to the American client. There became as soon as an article within the Wall Boulevard Journal closing week that said that roughly 50% of client spending is the very best 10% of income earners, these who plot over $250,000 per 12 months and up. And that is the reason unhealthy for our economy. It's good no longer good. So I'm without a doubt taking into consideration the indisputable fact that nearly all spending is on the top of the pyramid for the American client and most traditional of us center class, lower center class, lower class. They would not maintain any excess money to exhaust on anything else good now. And I think that is a real vulnerable vulnerability threat for the economy first and for our international locations more importantly second. It's no longer a healthy scenario. And I moreover would add to that that the the the main 12 months you aquire your private dwelling has gone up from a median age of 26, 27 to 34. And that is the reason without a doubt unhappy.

I mean, thought to be one of the significant good issues about being on this country is the flexibility to maintain your maintain dwelling, and the indisputable fact that americans can no longer maintain the funds for it till they're much older good now is very unhealthy. And that is the reason due to passion charges going up dramatically and due to price of single family homes going up dramatically for the reason that fab recession, because we did now not plot ample homes. So optimistically we will maintain a much increased provide of homes coming on the market within the following 5 to 10 years, so more of us can maintain the funds for to maintain their first dwelling. That is one thing we should all cheer for. And good now, it be it be it be without a doubt kind of an ominous, depressing thing referring to the economy. So we have got comparatively heaps of issues to awe about good now. However the coolest news is we stay here. That is mute the real country within the area. You realize, the the droll memoir that Winston Churchill made attend within the day is the United States is the real apartment in a foul neighborhood. The field is mostly no longer in great shape good now, but we're referring to the real actor is. So we should all celebrate that. However there may be there may be many issues to awe about and be cautious about good now as successfully.

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