A new study from Lending Tree’s personal finance site MagnifyMonkey shows that about 70% of Americans believe a recession is coming. Additionally, over half of those surveyed believe the recession will happen by the end of this year. The research included responses from 2,000 people.
[in-text-ad]
What is not clear is what this will do to consumer spending. Inflation already has eaten into consumer pocketbooks. They have been hardest hit by high fuel prices and the increased costs of some foods. Add this to housing costs and occasional necessary purchases like clothing, and lower-class and middle-class Americans are tapped out from the standpoint of discretionary income.
Economists generally believe that the downturn will not be as deep as the Great Recession. Housing prices are unlikely to tumble 20% to 30%. Unemployment is unlikely to go as high as 10%. In fact, this could be a recession in which people do not lose jobs, though they do lose purchasing power. Also, the financial sector and banks are not in jeopardy as they were in 2008.
All in all, the next American recession will be caused by high oil prices as much as anything else. This is due to sanctions against Russian crude exports. The White House has stated that Americans may need to suffer because of support for Ukraine, which is the cause of these sanctions. If so, it will be a long, cold winter economically.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.