US living standards forecasted to plummet

Howard Davidowitz, a retail analyst, predicts a long term decline in living standards for the average American consumer. He says ‘the worst is yet to come” as a result of several factors. According to a report on Business Insider they include:

* An $8 trillion negative wealth effect from declining home values.

* A $10 trillion negative wealth effect from weakened capital markets.

* A $14 trillion consumer debt load amid “exploding unemployment” leading to “exploding bankruptcies.”

“The average American used to be able to borrow to buy a home, send their kids to a good school [and] buy a car,” he says. “A lot of that is gone.”

It is a grim prospect.