On The Market

If You Feel Like We’re in a Recession, Listen to This w/Nicole Lapin

Oct 24, 2024

Nicole Lapin, a renowned journalist and personal finance expert, breaks down the intriguing concept of a 'vibecession' where consumer sentiment feels recessionary despite positive economic indicators. She navigates the disconnect between what men and women think about the economy, the struggle for homeownership amidst rising costs, and the complexities of consumer debt. Lapin also highlights optimistic trends and 'bright spots' in the economy, emphasizing the importance of shifting perspectives as we move toward 2025.

29:10

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Episode guests

Nicole Lapin

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Quick takeaways

The concept of a 'vibecession' highlights the disconnect between positive economic indicators and consumer sentiment amidst financial struggles.

Despite rising wages since 2019, the escalating housing market and increasing consumer debt are creating significant challenges for many individuals.

Deep dives

Current State of Consumer Sentiment

The state of the American consumer is marked by a conflicting sense of optimism and pessimism. While numbers from the stock market and employment figures look favorable, many consumers express frustration over high prices, leading to a pervasive feeling that the economy is not performing as well as the data suggests. This phenomenon is often referred to as a 'vibe session,' where consumer sentiment diverges from actual economic indicators. Although inflation is reportedly decreasing, reality doesn't align for many individuals who still face elevated costs for essentials, leaving them dissatisfied despite positive economic data.

Intro

2min

Understanding the Disconnect in Consumer Sentiment and Economic Indicators

4min

Economic Frustrations: A Shared Struggle

5min

Housing Affordability and Economic Disparities

9min

Navigating Consumer Debt and Economic Optimism

10min

Does it feel like we’re in a recession? People are constantly discussing layoffs, many Americans are in credit card debt, home ownership seems unachievable, and you probably feel like you should be making more money based on how expensive everything is. But, on the other hand, inflation is down, stocks are up, and unemployment is still (relatively) low. This is what Nicole Lapin would refer to not as a recession but a “vibecession;” it feels like we’re in a recession, even if we aren’t.

As a renowned journalist, author, and money-minded podcast host of Money Rehab, Nicole is one of the best in the industry to come on and explain the state of the American consumer, why they feel so negative toward the economy, and what good news we have going into 2025. Nicole is breaking down exactly why Americans feel so disconnected from our growing economy and the reason consumers are getting frustrated.

But it’s not just bad vibes (okay, enough with the Gen-Z verbiage); there are “bright spots” in the economy that few are paying attention to. These data points come close to proving that we may be out of recession territory and confirm that the Fed did achieve its “soft landing.” Are we on our way to finally feeling good about the economy again?

In This Episode We Cover

Why it feels like we’re in a recession even though the economy is growing

The disconnect between men and women and who’s more optimistic in 2024

Did the Fed actually achieve their soft landing and an inflation rate update

The good news on wage growth (with a BIG caveat)

Rising credit card debt and whether or not this is a precursor to economic crisis

The “bright spots” in the economy that point to some good news for Americans

And So Much More!

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