US Economy Crisis Fires Up! Fear Strikes In Banks, Huge Warning To U.S Industries

US Economy Crisis Fires Up! Fear Strikes In Banks, Huge Warning To U.S Industries #economy #crisis #market In a world where financial stability hangs in the balance, a storm is brewing on the horizon. The United States, once a bastion of economic power, now finds itself standing on the cliff of a deepening debt crisis. As the nation grapples with the burden of debt, gloomy clouds gather over the financial landscape. Banks, once firm pillars of support, are beginning to pull back, casting shadows of uncertainty over industries that once thrived. The results of this crisis ripple far beyond the financial sector. Industries that form the backbone of the American economy now stand at a crossroads, their future hanging in the balance. The very foundation upon which these industries stand is threatened. If You Like This Video; Like, Share, Comment And Subscribe. This Means A Lot To Us! Thanks For Watching Our Video; US Economy Crisis Fires Up! Fear Strikes In Banks, Huge Warning To U.S Industries The numbers are in, and they’re not exactly what we hoped for. Americans’ credit card debt has just hit a record-breaking milestone, and it’s not a good one. According to the Federal Reserve Bank of New York, we’ve now crossed the $1 trillion mark in credit card debt for the very first time. In the span of just one quarter, credit card balances shot up by a whopping $45 billion, which translates to almost 4.6%. That puts our total credit card debt at a staggering $ trillion, as per the latest Quarterly Report on Household Debt and Credit from the New York Fed. The surge in credit card debt, along with a rise in auto loan balances, played a part in driving up the overall household debt by 1%. So, if you’re wondering, the total now stands at a jaw-dropping $ trillion for the quarter. To put things in perspective, that’s an increase of $2.9 trillion since the end of 2019, right before the pandemic threw everything into a loop. And just to be clear, the numbers from the New York Fed aren’t adjusted for inflation. Now, interest rates have skyrocketed to their highest levels in a whopping 22 years. It’s not just numbers and percentages, this has a real impact on everyday folks like you and me. As Sofia Baig, an economist from Morning Consult, puts it, these higher interest rates mean that it’s becoming pricier to pay off that debt we’ve been accumulating. With people still taking on more debt, this combo is adding even more pressure to households that are already feeling the pinch. The average interest rate on credit cards is now hovering at a near-record %. Credit card balances have been on the rise for a solid five quarters in a row. And when experts dug into the New York Fed’s data, it turns out that this is one of the biggest increases we’ve seen in two decades. These factors have been putting a damper on things for consumers, especially those who didn’t jump on the bandwagon of refinancing their homes when the pandemic hit. Speaking of which, Bank of America just spilled the beans on something interesting. More and more folks seem to be dipping into their 401 accounts due to financial troubles. During the second quarter, the number of people making a hardship withdrawal shot up by a whopping 36% compared to the same time last year. Now, while this isn’t happening to everyone, it does give us a hint that there might be some cracks forming in the financial armor of households. Sure, we’ve got lots of data showing that many folks are managing just fine. Their debts about their spendable cash are hanging in there, not to mention that late payments and joblessness are keeping low profiles. But, there is a limit to how much tough debt people can juggle before those late payments start to skyrocket. Also, delinquencies, those late or missed payments, are on the rise again. The latest report from the New York Fed shows that more folks are slipping into the “delinquency zone“ for credit cards, car loans, and mortgages. While mortgage delinquencies aren’t quite back to pre-pandemic levels, car and credit card delinquencies have hit their highest marks since, 2018 and 2012. But before you start ringing the alarm bells, the New York Fed researchers want us to know that things aren’t all doom and gloom. They’re saying that despite these wobbles, most American consumers have been holding their own quite admirably through the pandemic and beyond. But, it might get a tad trickier for some borrowers down the road. And oh, let’s not forget the return of those student loan payments this fall, that might add a bit of extra pressure for those in the student loan boat. More Details In The Video