When the economy is good, people re-elect a President, when it is bad, they will vote him out of office.
It doesn’t take a professional economist or a seasoned investor to see that America’s economy is in serious trouble.
Now, some new numbers explain why America is on the verge of a serious financial crisis, and the media is trying to cover it up to prop up Joe Biden and the Democrats.
Subprime borrowers are spiraling
Borrowers across the country are starting to fall behind on their payments, particularly subprime borrowers.
The last time these latest numbers were anything close to what they are right now was during the last major financial crisis in 2008.
Subprime borrowers who are at least 60 days behind on their auto loans reached a shocking 6.11% last month, which is the highest percentage ever recorded since 1994 when the data was first analyzed, according to Fitch Ratings.
Margaret Rowe, senior director of Fitch, said that “the subprime borrower is getting squeezed.”
They’re getting squeezed so much that the current number wasn’t even that high during the Great Recession or the COVID pandemic.
Aside from delinquent auto loans, credit card delinquency at small banks has also hit an all-time high at 7.51%, which is also the highest level ever recorded.
Most everyday lower-to-middle-class Americans rely on credit cards when times get tough, and these numbers show that even repaying those bills is becoming a challenge.
Early-stage mortgage delinquencies are also on the rise, referring to payments that are 30 and 60 days past due.
An additional 48,800 or 5.1% of borrowers were 30 days late on their mortgage payments, and another 8,700 or 3% were 60 days late on their mortgage payments.
As these rates have been increasing for the last four to six months, home foreclosures are also on the rise in America as people struggle with inflation and the high cost of living.
The data comes from a new report published by ATTOM, a real estate data provider, which found that foreclosure filings including default notices, scheduled auctions, and bank repossessions skyrocketed to an eye-watering 28% in the third quarter.
To put things in perspective, foreclosures are now up 34% from the same time last year.
The problem is that many Americans are continuing to spend money just as they always had, although the current cost of living is rising much faster than wages can keep up, causing average people to get themselves into more debt.
The middle class is shrinking
Not only are more people falling behind on important payments, but it appears that the middle class is shrinking at a rapid pace.
The percentage of Californians who live in poverty has risen from 11% in 2012 to 16.4% last year.
These numbers are largely attributed to the expiration of a variety of federal pandemic-era relief programs like the Child Tax Credit.
All of this comes as the world is in turmoil, and some worry that the United States will enter into a war in the Middle East.
If oil from the Middle East stops flowing to America, the price of oil per barrel and gas per gallon will spike to numbers unimaginable, leading to an even bigger crisis.
Meanwhile, banks are closing branches and laying off thousands of employees across the country, so Americans must start getting prepared now.
Informed American will keep you up-to-date on any developments to this ongoing story.
