BREAKING: Real disposable income growth has now trailed real consumer spending growth for 24 consecutive months, the longest streak in data going back to at least the 1960s. This means Americans have been spending more than their inflation-adjusted incomes have grown for 2 consecutive years. As a result, Americans have increasingly relied on savings and debt to fund the gap. By comparison, the previous longest streak was ~23 months, set in the late 1970s. Meanwhile, the US personal savings rate has fallen -1.7 percentage points since January, to just 2.7%, its 4th-lowest reading since the 2008 Financial Crisis. Furthermore, US credit card debt surged by $21 billion in Q2 2026, to $1.26 trillion, the 2nd-highest level on record. Consumers are using debt to "fight" inflation.(The Kobeissi Letter)