Eurodollar University Amazon Reveals Americans Have Hit Their Breaking Point
Jul 10, 2025
The podcast discusses Amazon's extended Prime Days, highlighting unusual consumer economy weaknesses. A significant drop in credit card usage indicates deeper economic woes. Despite narratives of consumer resilience, troubling indicators point to declining job security and earnings. The analysis contrasts optimistic payroll reports with stark realities, revealing the challenges retailers face amid reduced spending and overall economic strain.
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Amazon's Four-Day Prime Insight
- Amazon extended its Prime Day to four days due to weak consumer spending and merchants' cost pressures.
- This unusual move signals significant changes in consumer behavior and economic conditions in 2025.
Declining Paychecks Signal Weakness
- Average weekly paychecks declined for the first time since August 2020, indicating labor market weakness.
- This decline explains why revolving consumer credit also fell, confirming broad economic struggles.
Merchants Struggle with Tariffs
- Dan Piscorse, selling aluminum trays on Amazon, can't offer Prime Day discounts due to 50% tariffs.
- Unilever's Blue Air reduced product offerings for Prime Day to manage tariff-related costs cautiously.