Financial Expert David Stryzewski Sounds Alarm on Potential Economic Black Swan Event
Author: David Stryzewski, CEO, Sound Planning Group
November 22, 2023 – David Stryzewski, financial expert and CEO of Sound Planning Group, has recently drawn attention to the possibility of a Black Swan event in the economic landscape. Stryzewski concerns stem from significant shifts in consumer behavior and increasing credit card debt.
In an economy that heavily relies on consumer spending, accounting for approximately 70% of all economic activities, any major changes can have far-reaching consequences. According to recent reports, consumers are purchasing fewer items, albeit at higher prices. This trend has led to a somewhat paradoxical situation where retailers are reporting lower sales volumes but higher revenues.
Adding to the complexity of the situation, the United States has now exceeded one trillion dollars in credit card debt for the first time in history. Unlike other forms of debt, such as home mortgages or auto loans, credit card debt is unsecured. This means there are no assets to repossess should a debtor default, making it a riskier proposition for lenders.
As Stryzewski explains, “People will start looking at their credit card bills in the new year and realize they are paying an Annual Percentage Rate (APR) of over 23%.” The high-interest rate environment poses a significant challenge for those trying to pay off their debts, particularly if they are only able to make minimum payments.
Stryzewski warns that this escalating debt situation could lead to banks ending up ‘holding the bag’ for these unsecured debts. If people continue to max out their credit cards without the means to repay them, the potential consequences for the economy could be severe.
CEO, Sound Planning Group
The information contained herein is general in nature. It does not take into account your particular investment objectives, financial situation, or needs. It is provided for illustrative or informational purposes only, and should not be construed as advice. Our advisors can meet with you to discuss your retirement plan.
Ready to Take The Next Step?
For more information about any of our products and services, schedule a meeting today or register to attend a seminar.