Friedberg: US faces consumer credit crisis within nine to twelve months

“I really think we're going to run into a consumer credit bubble here. I do not think that consumers are going to slow down their spending or change their lifestyle as quickly as investors are changing their investing style. We have seen investors in public markets and private markets take massive corrective hits this week and last week, and they're changing their behavior and some of the stories we shared today, but consumers are taking on more credit. They're opening credit cards. They're taking out bigger loans. Prices are going up 10% year over year for them. And so the concern is if we actually do hit a recession, and we don't see real wage growth, and the consumer credit bubble continues to grow, we're going to face a credit crisis, and call it nine to, you know, nine months to a year, where we're all going to wake up and be like, wait a second, how are consumers going to be able to afford all this credit?”

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