A Shocking New Survey Finds That Most Americans Are Completely Unprepared For The Next Recession

Just like in 2008, most Americans are living right on the edge financially, and so any sort of an economic downturn is going to be extremely painful for tens of millions of American families.  When you have not built up a financial cushion, any sort of a setback can be absolutely disastrous.  During the last recession, millions of Americans suddenly lost their jobs, and because most of them were living paycheck to paycheck a lot of them suddenly couldn’t pay their mortgages.  In the end, millions of Americans lost their homes during the “subprime mortgage meltdown”, and today the housing bubble is even larger than it was back then.  Sadly, the reality of the matter is that many of us are just barely scraping by from month to month, and that is a very dangerous position to be in.

A new survey that was just released shows just how vulnerable American consumers have become at this point in time.  According to the survey, the top financial priority for 38 percent of all Americans is just trying to pay the bills, and for 19 percent of all Americans it is dealing with credit card debt.  The following comes from Fox Business

Among survey respondents in the nationally representative poll, 38 percent said their top financial priority is “just staying current on living expenses or getting caught up on all the bills.” Almost 3 in 10 respondents (29 percent) said their chief priority was “saving more money,” and 19 percent indicated they were mainly working on paying down debt from products like credit cards and student loans.

So that means that for nearly 60 percent of all Americans, the top financial priority each month is either finding a way to pay the bills or dealing with credit card debt.

And if you are struggling to pay the bills each month or you are drowning in credit card debt, the truth is that you are definitely not ready for the next recession.

The same survey also discovered that a very large percentage of Americans are not following any sort of a financial budget

More than a decade into the longest economic expansion on record, almost two-fifths of people said in a new Bankrate poll that their main financial priority was just keeping their heads above water on living expenses rather than saving money.

Nearly as many of those surveyed said that they’re not following financial budgets, according to Bankrate’s September Financial Security Poll.

So many people out there spend money whenever they feel like it and they don’t have any sort of a plan for their finances.

And then when they get deep into debt they wonder how that could have possibly happened.

It is so important to take charge of your money and to have a plan for where you want to go financially.  Because if you don’t have a plan for your money, I promise you that somebody else does.  As many of us have learned the hard way, it is all too easy to fall victim to all of the financial predators that are constantly circling these days.  The big financial institutions want to get Americans into as much debt as possible, because the deeper we are in debt the more money they make.

In our society, everything has become all about extracting as much money out of you as possible.  Even when we are at the checkout counter at the supermarket we are asked if we want to get some “cash back” so that they can charge us a “convenience fee” and make even more money.  And of course most of the money that is extracted out of us ultimately ends up at the very top of the financial pyramid, and as a result the gap between the “haves” and the “have nots” continues to grow.

In fact, the U.S. Census Bureau is telling us that the gap between the rich and the poor is now “greater than it has ever been”

In the midst of the longest economic expansion the United States has ever seen, with poverty and unemployment rates at historic lows, the separation between rich and poor from 2017 and 2018 was greater than it has ever been, federal data show.

To be fair, the U.S. Census Bureau has only been measuring this since 1967, and so it is entirely possible that things could have been even worse earlier in our history.

But the numbers do clearly show that the gap has been steadily widening for years, and at this point wealth inequality in the U.S. is far greater than it is in any country in Europe

The Gini index measures wealth distribution across a population, with zero representing total equality and 1 representing total inequality, where all wealth is concentrated in a single household. The indicator has been rising steadily during the past several decades. When the Census Bureau began studying income inequality more than 50 years ago, the Gini index was 0.397. In 2018, the Gini index rose to 0.485.

By comparison, no European country had a Gini index greater than 0.38 between 2017 and 2018.

So what this means is that we have a small group of people at the top of the pyramid doing really, really well, but meanwhile most of the rest of us are deeply struggling.

In fact, survey after survey has shown that the vast majority of Americans are currently living paycheck to paycheck.

The way that our entire system is structured greatly favors Wall Street, the big banks, the largest corporations and those with enormous amounts of money.  And they are able to maintain control of the system by literally buying elections and controlling public opinion through their control of the mainstream media.  Our founders were deeply suspicious of large concentrations of power, and we need to return to the values that our nation was founded upon if we ever hope to turn things around.

Unfortunately, more Americans that ever are convinced that socialism is the answer to the problems that I just discussed, and this is fueling the rise of politicians such as Bernie Sanders and Elizabeth Warren.

But socialist experiments have failed all throughout human history, and socialism would fail here too.

Big government is never the answer.  Sadly, we already have the biggest government in the history of the world, and many Americans seem absolutely determined to make it even bigger.

About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time. Of course the most important thing that we can share with people is the gospel of Jesus Christ, and if you would like to learn more about how you can become a Christian I would encourage you to read this article.

The Mainstream Media Says The Middle Class Isn’t Shrinking – But That Is Only Because Their Definition Includes Lots Of Poor People

If you ask the mainstream media, they will tell you that about half the country is still middle class.  In fact, a CNBC article that just came out says that “52% of American adults live in ‘middle class’ households”.  Of course that is down from 61 percent in 1971, but considering everything we have been through in recent years, that still looks pretty good.  But is it the truth?  In the end, it all comes down to how you define “the middle class”.  If I defined the middle class as anyone that makes from zero dollars to a trillion dollars a year, then 100 percent of Americans would be considered “middle class” by that definition.  So we can’t just look at the final number they give us.  Instead, we have to dig deeper and find out how they came up with the number in the first place.

The larger the household, the more income it takes to sustain a middle class lifestyle.  And according to CNBC, the definition of a “middle class household” is extremely broad at every household size…

  • Household of one: $26,093 to $78,281
  • Household of two: $36,902 to $110,706
  • Household of three: $45,195 to $135,586
  • Household of four: $52,187 to $156,561
  • Household of five: $58,347 to $175,041

If you are single person and you are making just $26,000 a year, there is no way that you should be considered part of “the middle class”.

First of all, there is no way that you would be able to buy a home in most major U.S. cities these days, and home ownership has always been considered to be one of the key hallmarks of the middle class.

Secondly, $26,000 a year breaks down to just a little over $2,000 a month before taxes.  After paying for rent, health insurance and a little bit of food, there wouldn’t be any money left.

You can define that as a “middle class lifestyle” if you want, but I sure don’t.

Over the past decade, the cost of living has increased at a far faster pace than our paychecks have.  As a result, many Americans that used to live middle class lifestyles are no longer able to do so.

Health insurance is just one example.  Thanks to Obamacare, health insurance premiums have absolutely skyrocketed, and this is financially crippling families all over the nation.  In addition to health insurance, here are just a few of the other expenses that average American families must pay on a regular basis…

-rent or mortgage payment

-the power bill

-the water bill

-food

-phone

-Internet

-vehicle payment(s)

-gasoline

-vehicle repairs

-car insurance

-dental bills

-home or rental insurance

-life insurance

-student loan debt payments

-credit card payments

-furniture, clothing and other necessities

If you are making just two or three thousand dollars a month before taxes, there is no way that you can cover all of that.

So I am sorry, but the way that CNBC is defining “the middle class” is just wrong.

Considering everything that I have just discussed, it should not be surprising to learn that a survey conducted earlier this year found that 78 percent of Americans are living paycheck to paycheck at least part of the time.

And if you are living paycheck to paycheck, there is a really good chance that you are not middle class.

Of course another major factor is geography.  If you live in a very expensive coastal city like New York or San Francisco, it has been estimated that it now takes approximately $350,000 a year to be part of the middle class…

Here’s a sad reality: In order to raise a family in an expensive coastal city like San Francisco or New York, you’ve now got to make $350,000 or more a year.

You can certainly live on less, but it won’t be easy if your goal is to raise a family, save for your children’s education, save for your own home and save for retirement (so you can actually retire by a reasonable age).

When I was growing up, I thought that if someone was making $50,000 a year that person really had it made.

But these days $50,000 a year will barely get you above poverty level depending on the size of your household and where you live.

In a desperate attempt to maintain a middle class lifestyle when their incomes don’t really allow for it, many Americans are going into shocking amounts of debt.  And these days even our young adults are piling on debt as if tomorrow will never come

Millennials carry an average of $27,900 in debt, not including mortgages, according to new data released today by Northwestern Mutual. Gen Z, the oldest of whom are now 22 years old, have an average debt of $14,700.

Having sizable debt at a young age “is the new normal,” said Chantel Bonneau, wealth management advisor at Northwestern Mutual. “There are lots of people who exit school, and before they start their first job, have debt. That is a different situation from 30 years ago.”

But when you pile on too much debt, it can become financially suffocating very quickly, and many of our young people actually report becoming “physically ill” from worrying about it so much…

About 45% of millennials and 43% of Gen Z reported feeling guilty about their debt at least every month — more than other age groups. But debt is a major stressor across age groups. One-fifth of all respondents said their debt made them physically ill at least monthly, 45% said it made them anxious at least monthly, and 35% said they felt guilty once a month or more.

Overall, U.S. households are now over 13 trillion dollars in debt, and one of the primary reasons why we have accumulated so much debt is because most of us want to live lifestyles that we haven’t really earned.

We are also facing record levels of corporate debt, local government debt, state government debt and federal government debt.  And when this debt bubble bursts, it will completely destroy our system.

We have entirely mortgaged our future for short-term gain, and we are so proud whenever the short-term economic numbers tick up a little bit.

But in the process we have completely destroyed the future for every generation of Americans that was supposed to come after us, and that is not something to smile about at all.

About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time. Of course the most important thing that we can share with people is the gospel of Jesus Christ, and if you would like to learn more about how you can become a Christian I would encourage you to read this article.

“I don’t know how I can maintain this face of joy and warmth when I have to go home and forage for food in other people’s garbage”

Despite all the bragging that the mainstream media is constantly doing about the U.S. economy, the truth is that most Americans are deeply struggling right now.  59 percent of us are living paycheck to paycheck, and nearly 50 million Americans are living in poverty.  Sadly, most of those that are living in poverty actually come from a home where at least one person is currently employed.  Millions upon millions of Americans are working as hard as they can, but it simply is not enough to pull them above the poverty line, and it is a very serious national crisis.  Even though employment levels have been relatively stable for the last couple of years, the middle class has continued to disintegrate, and the ranks of the homeless have continued to grow.  Every year the cost of living rises faster than wages are growing, and as a result more U.S. families are being booted out of the middle class on a continual basis.  Many Americans are working two or three jobs in a desperate attempt to make ends meet, but often that isn’t even enough.  And if things are this bad right now, what will things look like once we get deep into the next recession?

Abigail Disney is the granddaughter of the late Roy Disney, and she is exceedingly wealthy, but she does not have any active role with the company her father founded today.

Recently, she heard that employees at Disneyland were having a really rough time making ends meet, and so “she went to Disneyland to see it for herself”

Abigail Disney told the Yahoo News show “Through Her Eyes” that a worker sent her a Facebook message expressing how tragic being employed at the Magic Kingdom has become. So she went to Disneyland to see it for herself.

“Every single one of these people I talked to were saying, ‘I don’t know how I can maintain this face of joy and warmth when I have to go home and forage for food in other people’s garbage,’” Disney, 59, told Yahoo News host and human rights activist Zainab Salbi in an interview posted Monday.

Could you imagine Mickey Mouse and Snow White foraging for food in the dumpster behind an apartment building after a full day of entertaining children?

Apparently this sort of thing is actually happening, and a recent survey of Disney employees discovered that 73 percent of them didn’t make enough money “to pay for basic expenses each month”…

A 2018 survey conducted by on behalf of a group of unions found that nearly three-quarters of full- and part-time employees (73%) said that they didn’t earn enough money working at Disneyland Resort to pay for basic expenses each month. More than half were worried about being evicted, and about one-tenth reported being homeless in the previous two years.

But actually the truth is that the average Disney employee is better off than the average American worker.

Today, the median yearly salary of a Disney employee is $46,127.

According to the Social Security Administration, 50 percent of all American workers make less than $30,533 a year.

Of course the cost of living is much higher in southern California than it is in most of the rest of the nation, and so that must be factored in as well.

Ultimately, anyone that is making less than $50,000 a year is likely to be struggling in this economy, because you simply cannot support a middle class lifestyle for a family of four or more on $50,000 a year at this point.

What makes things so much worse is the fact that most of us are absolutely drowning in debt.  Today, U.S. consumers are nearly 14 trillion dollars in debt, and many of us have already signed up for a lifetime of debt payments before we even leave school.

For example, I recently read about one woman that still owed nearly half a million dollars on her student loans…

Elisha Bokman has been out of school for eight years. Still, her student loan balance is half a million dollars.

Today, for her doctorate degree in naturopathic medicine and master’s in acupuncture from Bastyr University, she owes $499,322.69.

She and her husband struggled to buy a house because of her debt. Eventually, the financial stress led them to a divorce.

Not even bankruptcy will erase those loans, and they will haunt her for decades to come.

Millions upon millions of Americans are silently suffering as they wrestle with their desperate financial circumstances, and this is happening while things are still relatively good.

But now we are heading into a new economic downturn, and much of the country can see what is happening

Middle-class Americans are less optimistic about their economic prospects than they were just six months ago, according to a new report from CUNA Mutual Group.

Although the majority of those polled said they feel relatively stable overall, they graded their chances of achieving the American dream as a “C,” down from a “B-minus” in the fall, the insurance provider found. Close to half were increasingly concerned about an upcoming recession.

Economic conditions are not going to get any better than they are right now, and what we are heading for is going to be very painful.

I can definitely understand that people are very frustrated that they cannot make a decent living even though they are working extremely hard, but how much more frustrated will they be when they don’t have any jobs at all?

For decades we have been painting ourselves into a corner, and we have wrecked the great economic machine that was handed down to us by previous generations.

Now a day of reckoning is at hand, and it will eventually result in the greatest economic temper tantrum that our nation has ever seen.

About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

Goodbye Middle Class: The Percentage Of Wealth Owned By The Top 10% Just Got Even BIGGER

The middle class in America is being systematically eviscerated, and it is getting worse with each passing year.  As you will see below, one new study has found that 10 percent of Americans now own 70 percent of all the wealth.  Once upon a time, the United States had the largest and most vibrant middle class in the history of the world, but pretty soon we are just going to have the ultra-wealthy and everyone else.  Our system has been designed to funnel as much wealth as possible to the very top of the financial pyramid, and that means that most of the rest of us are deeply struggling.  And when you are just barely getting by from month to month, all it takes is one bad break to knock you completely out of the middle class and into poverty.

I have been chronicling the demise of the middle class for many years, but I didn’t know that the numbers had gotten this bad.  According to a study that was recently conducted by the Federal Reserve, the percentage of wealth controlled by the top 10 percent of U.S. households has shot up from 60 percent in 1989 to 70 percent today

Deutsche Bank’s Torsten Sløk says that the distribution of household wealth in America has become even more disproportionate over the past decade, with the richest 10% of U.S. households representing 70% of all U.S. wealth in 2018, compared with 60% in 1989, according to a recent study by researchers at the Federal Reserve.

The study finds that the share of wealth among the richest 1% increased to 32% from 23% over the same period.

The ironic thing is that the Federal Reserve has actually done much to cause this high concentration of wealth among the elite.  In response to the last financial crisis, the Federal Reserve pumped unprecedented amounts of money into the financial system, and this has created the greatest stock market bubble in our history

The Dow Jones Industrial Average DJIA, +2.06% has climbed nearly 300% since its closing low in March 2009, the S&P 500 index SPX, +2.14% has climbed 325%, while the Nasdaq Composite Index COMP, +2.65% has soared 535% over the same period.

Meanwhile, wages have stagnated for ordinary Americans.  According to the Social Security Administration, the median yearly wage in the United States is currently just $30,533.  In other words, 50 percent of all American workers make at least that much per year, and 50 percent of all American workers make that much or less per year.

$30,533 a year breaks down to approximately $2,500 per month, and you simply can’t support a middle class lifestyle for a typical American family on $2,500 a month.

Meanwhile, the cost of living for middle class families has exploded higher over the past few decades…

Everyday expenses continue to rise, and as the shadow inflation increases, it also threatens to wipe out the middle class – what’s left of it anyway. In fact, middle-class life is now 30% more expensive than it was 20 years ago, according to a separate report by CNBC. The cost of things such as college, housing, and child care has risen precipitously: Tuition at public universities doubled between 1996 and 2016 and housing prices in popular cities have quadrupled, Alissa Quart, author and executive director of the Economic Hardship Reporting Projecttells CNBC Make It.

As the cost of living has risen faster than our incomes have, more Americans have been squeezed out of the middle class with each passing month.

As a result, an increasing number of Americans have become financially dependent on the government, and our rapidly expanding welfare state is a big reason why the federal government is now 22 trillion dollars in debt.

Of course many Americans are no longer able to make it at all, and the ranks of the homeless are swelling all over the nation.  In fact, we just got some brand new numbers about the growth of homelessness in the Los Angeles area that are absolutely eye-popping

The number of homeless people counted across Los Angeles County jumped 12% over the past year to nearly 59,000, with more young and old residents and families on the streets, officials said Tuesday.

The majority of the homeless were found within the city of Los Angeles, which saw a 16% increase to 36,300, the Los Angeles Homeless Services Authority said in presenting January’s annual count to the county Board of Supervisors.

Yes, it is true that we have a record number of millionaires on the west coast in 2019, but meanwhile our major west coast cities are being transformed into rotting, decaying nightmares right in front of our eyes.

During a recent interview with Laura Ingraham, Dr. Drew Pinsky admitted that there is “a complete breakdown of the basic needs of civilization in Los Angeles right now”

“We have a complete breakdown of the basic needs of civilization in Los Angeles right now,” Pinsky told host Laura Ingraham. “We have the three prongs of airborne disease, tuberculosis is exploding, (and) rodent-borne. We are one of the only cities in the country that doesn’t have a rodent control program, and sanitation has broken down.”

Pinsky’s comments followed news that Los Angeles police officer had contracted typhoid fever, a rare and life-threatening illness that fewer than 350 Americans contract each year.

Los Angeles had a typhus outbreak last summer and will likely have another this summer, Pinsky said. Meanwhile, bubonic plague – a pandemic that killed tens of millions of people during the 14th century – is “likely” already present in Los Angeles, Pinsky added.

Despite all of our great wealth and despite all of our advanced technology, this is what life is like in our second largest city right now.

And if things are degenerating this badly during stable times, what are things going to look like once our society plunges into chaos?

Ultimately, the American Dream is about being self-sufficient.  Most people want to be able to work hard and provide a nice life for their families, but that is becoming harder and harder to do.

No matter which political party has been in power in Washington, the middle class has continued to shrink and more wealth and power has become concentrated in the hands of the elite.

Now we stand on the precipice of the next major economic downturn, and many are deeply concerned about what that is going to mean for the future of our society.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

Two-Thirds Of Americans Think That They Are Middle Class – But Millions Of Them Are Dead Wrong

The middle class has been steadily shrinking, but most Americans still believe that they are a part of it.  Perhaps this is due at least in part to the egalitarian values which have been pounded into our heads for most of our lives.  Very few Americans would have the gall to define themselves as “upper class”, and I have never met anyone that would describe themselves as “lower class”.  In place of “lower class”, many politicians now like to use the much more politically correct term “working class”, but a more apt description might be “the working poor”.  Today, half of all American workers make less than $30,533 a year, and you certainly cannot support a middle class lifestyle for a family with children on that kind of income.

Our incomes have stagnated as the cost of living has soared, and the middle class has experienced steady erosion as a result.  But despite all that, 68 percent of all Americans still consider themselves to be “middle class”

That’s according to new data from Northwestern Mutual’s 2018 Planning & Progress Study, which found that 68 percent of Americans consider themselves middle-class, down 2 percent from last year. However, because of the fuzziness of the definition, far more Americans consider themselves middle-class than technically qualify based on income.

In reality, the middle class now makes up just over 50 percent of the total U.S. population, according to a recent report from Pew Research Center, which used 2016 data. That’s compared to 61 percent in 1971.

So according to that survey, somewhere around 18 percent of all Americans wrongly believe that they belong to the middle class.

There are 325 million people living in the United States today, and so we are potentially talking about 58 million people that think that they are middle class but really aren’t.

Other surveys have come up with similar numbers.  For example, one recent survey discovered that 22 percent of non-middle income Americans identified themselves as middle income

Overall, 22 percent of the non-middle-income Americans surveyed incorrectly classified themselves as middle income. The majority of those people are actually lower-income, with approximately 19 percent of the low-income Americans surveyed defining themselves as middle income. Only approximately 2 percent of upper-income Americans mistakenly defined themselves as middle income.

Of course even if someone can be defined as “middle income” does not necessarily mean that things are going well.

Today, most Americans are living paycheck to paycheck at least part of the time.  Living on the edge financially can be a constant source of stress, and it can easily start taking over your entire life.  To illustrate this point, I would like to share with you a short excerpt from a recent article by Lauren Wellbank

Like so many Americans, we struggle to get by each and every month. The compounding interest we rack up by always being a breath away from being broke plays a large role in that. We pay interest on purchases that we can’t afford to pay out of pocket in the moment (like our electric bill when my pay was short last month), and then we pay late fees when we have to take advantage of that grace period. Our monthly payments never go down because we can’t get out in front of any of it.

All of this has a psychological and emotional impact. I’m constantly running our budget through my mind, trying to reassure myself that the numbers will work out this month. I’m never not thinking about money. I dread going to the store or having to buy gas because each purchase moves us closer back down to that zero balance. The anxiety over our finances never goes away.

Have you ever been there?

Perhaps you are there right now.  If so, you are definitely not alone.  Most American families are deeply struggling, and it is getting worse with each passing year.

Meanwhile, the folks at the very top of the pyramid have been thriving.  In fact, one study discovered that the gap between the wealthy and the poor in the United States is the largest that it has been since the 1920s.

We truly are living in a “new Gilded Age”, and the biggest winners have been those in the “top 0.1 percent”.  The following comes from Matthew Stewart

It is in fact the top 0.1 percent who have been the big winners in the growing concentration of wealth over the past half century. According to the UC Berkeley economists Emmanuel Saez and Gabriel Zucman, the 160,000 or so households in that group held 22 percent of America’s wealth in 2012, up from 10 percent in 1963. If you’re looking for the kind of money that can buy elections, you’ll find it inside the top 0.1 percent alone.

It has been said that money cannot buy happiness, and that is true.

But without a doubt the numbers show that there are some tremendous disadvantages to being poor.  Here is more from Stewart

Obesity, diabetes, heart disease, kidney disease, and liver disease are all two to three times more common in individuals who have a family income of less than $35,000 than in those who have a family income greater than $100,000. Among low-educated, middle-aged whites, the death rate in the United States—alone in the developed world—increased in the first decade and a half of the 21st century. Driving the trend is the rapid growth in what the Princeton economists Anne Case and Angus Deaton call “deaths of despair”—suicides and alcohol- and drug-related deaths.

Unfortunately, economic conditions are starting to deteriorate once again, and it is those at the bottom of the totem poll that are going to feel the pain first.

The period of relative stability that we had been enjoying is rapidly ending, and just about everyone can see that hard times are ahead of us.

A new survey of corporate CFOs was just released that contains some eye-popping numbers.  It turns out that 49 percent of them believe that a recession will start by the end of next year, and a whopping 82 percent of them believe that a recession will have started by the end of 2020

Considering that major corporations have been busy shedding workers, it follows that corporate finance leaders see a U.S. recession ahead. Evidence of a slowing economy has been popping up, including recent large-scale cuts in head count by U.S. corporations such as General Motors and Verizon.

Eighty-two percent of chief financial officers polled believe a recession will have started by the end 2020, and nearly 49 percent think the downturn will arrive sometime next year, according to the Duke University/CFO Global Business Outlook, released Wednesday.

This is yet another example of the major psychological shift that is taking place in our nation.  The overwhelming consensus is that economic activity is going to slow down, and it won’t be people with millions of dollars in their bank accounts that will be suffering.

No, once again it will mostly be people that are barely getting by that will be losing their jobs and their homes, and nobody is going to come riding to their rescue.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

3 Things That Happened Just Before The Crisis Of 2008 That Are Happening Again Right Now

Real estate, oil and the employment numbers are all telling us the same thing, and that is really bad news for the U.S. economy.  It really does appear that economic activity is starting to slow down significantly, but just like in 2008 those that are running things don’t want to admit the reality of what we are facing.  Back then, Fed Chair Ben Bernanke insisted that the U.S. economy was not heading into a recession, and we later learned that a recession had already begun when he made that statement.  And as you will see at the end of this article, current Fed Chair Jerome Powell says that he is “very happy” with how the U.S. economy is performing, but he shouldn’t be so thrilled.  Signs of trouble are everywhere, and we just got several more pieces of troubling news.

Thanks to aggressive rate hikes by the Federal Reserve, the average rate on a 30 year mortgage is now up to about 4.8 percent.  Just like in 2008, that is killing the housing market and it has us on the precipice of another real estate meltdown.

And some of the markets that were once the hottest in the entire country are leading the way down.  For example, just check out what is happening in Manhattan

In the third quarter, the median price for a one-bedroom Manhattan home was $815,000, down 4% from the same period in 2017. The volume of sales fell 12.7%.

Of course things are even worse at the high end of the market.  Some Manhattan townhouses are selling for millions of dollars less than what they were originally listed for.

Sadly, Manhattan is far from alone.  Pending home sales are down all over the nation.  In October, U.S. pending home sales were down 4.6 percent on a year over year basis, and that was the tenth month in a row that we have seen a decline…

Hope was high for a rebound (after new-home-sales slumped), but that was dashed as pending home sales plunged 2.6% MoM in October (well below the expected 0.5% MoM bounce).

Additionally, Pending Home Sales fell 4.6% YoY – the 10th consecutive month of annual declines…

When something happens for 10 months in a row, I think that you can safely say that a trend has started.

Sales of new homes continue to plummet as well.  In fact, we just witnessed a 12 percent year over year decline for sales of new single family houses last month

Sales of new single-family houses plunged 12% in October, compared to a year ago, to a seasonally adjusted annual rate of 544,000 houses, according to estimates by the Census Bureau and the Department of Housing and Urban Development.

With an inventory of new houses for sale at 336,000 (seasonally adjusted), the supply at the current rate of sales spiked to 7.4 months, from 6.5 months’ supply in September, and from 5.6 months’ supply a year ago.

If all of this sounds eerily similar to 2008, that is because it is eerily similar to what happened just before and during the last financial crisis.

Up until now, at least the economic optimists could point to the employment numbers as a reason for hope, but not anymore.

In fact, initial claims for unemployment benefits have now risen for three weeks in a row

The number of Americans filing applications for jobless benefits increased to a six-month high last week, which could raise concerns that the labor market could be slowing.

Initial claims for state unemployment benefits rose 10,000 to a seasonally adjusted 234,000 for the week ended Nov. 24, the highest level since the mid-May, the Labor Department said on Thursday. Claims have now risen for three straight weeks.

This is also similar to what we witnessed back in 2008.  Jobless claims started to creep up, and then when the crisis fully erupted there was an avalanche of job losses.

And just like 10 years ago, we are starting to see a lot of big corporations start to announce major layoffs.

General Motors greatly upset President Trump when they announced that they were cutting 14,000 jobs just before the holidays, but GM is far from alone.  For a list of some of the large firms that have just announced layoffs, please see my previous article entitled “U.S. Job Losses Accelerate: Here Are 10 Big Companies That Are Cutting Jobs Or Laying Off Workers”.

A third parallel to 2008 is what is happening to the price of oil.

In 2008, the price of oil shot up to a record high before falling precipitously.

Well, now a similar thing has happened.  Earlier this year the price of oil shot up to $76 a barrel, but this week it slid beneath the all-important $50 barrier

Oil’s recent slide has shaved more than a third off its price. Crude fell more than 1% Thursday to as low as $49.41 a barrel. The last time oil closed below $50 was in October 4, 2017. By mid morning the price had climbed back to above $51.

Concerns about oversupply have sent oil prices into a virtual freefall: Crude hit a four-year high above $76 a barrel less than two months ago.

When economists are asked why the price of oil is falling, the primary answer they give is because global economic activity is softening.

And that is definitely the case.  In fact, we just learned that economic confidence in the eurozone has declined for the 11th month in a row

Euro-area economic confidence slipped for an 11th straight month, further damping expectations that the currency bloc will rebound from a sharp growth slowdown and complicating the European Central Bank’s plans to pare back stimulus.

In addition, we just got news that the Swiss and Swedish economies had negative growth in the third quarter.

The economic news is bad across the board, and it appears to be undeniable that a global economic downturn has begun.

But current Fed Chair Jerome Powell insists that he is “very happy about the state of the economy”

Jerome H. Powell, the Federal Reserve’s chairman, has also taken an optimistic line, declaring in Texas recently that he was “very happy about the state of the economy.”

That is just great.  He can be as happy as he wants, and he can continue raising interest rates as he sticks his head in the sand, but nothing is going to change economic reality.

Every single Fed rate hiking cycle in history has ended in a market crash and/or a recession, and this time won’t be any different.

The Federal Reserve created the “boom” that we witnessed in recent years, but we must also hold them responsible for the “bust” that is about to happen.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

Jim Cramer On The U.S. Economy: “Many CEOS Have Told Me About How Quickly Things Have Cooled”

A lot of people are shocked by how rapidly things are beginning to move.  The U.S. economy is slowing down at a pace that we haven’t seen since the last recession, and this is something that I have been tracking extensively.  But now the slowdown is so obvious that even some of the biggest names in the mainstream media are talking about it.  For example, just take a look at what Jim Cramer of CNBC is saying.  For a long time, he was touting how well the U.S. economy was doing, but now his tune has completely changed.  According to Cramer, a lot of corporate executives have “told me about how quickly things have cooled”, and he says that many of them are shocked because this “wasn’t supposed to occur so soon”

Company leaders across industries are telling Jim Cramer — off the record — that they’re worried about a slowdown in the U.S. economy, Cramer said Thursday on CNBC.

“So many CEOs have told me about how quickly things have cooled,” the “Mad Money” host said. “So many of them are baffled that we could find ourselves in this late-cycle dilemma that wasn’t supposed to occur so soon.”

Just like in 2008, the suddenness of the downturn is taking many of the experts by surprise.

Because our system is so highly vulnerable, when things start to go bad we can see a crisis escalate very rapidly, and the outlook for the months ahead is very troubling.

Normally Jim Cramer doesn’t talk like this, but now he is warning that we are “on the verge” of a slowdown that could potentially “cause an awful lot of havoc and cost a lot of jobs”

“There are degrees of slowdowns that, nonetheless, can cause an awful lot of havoc and cost a lot of jobs, and that’s what we’re on the verge of here,” he said. “That’s what the markets are saying. That’s what the CEOs are worried about offline.”

The situation reminded Cramer of when, on the cusp of the 2008 financial crisis, his corporate sources confided in him that the Fed “seemed to be out of touch … with what was happening” on Wall Street, he said. That led to his now-famous “They know nothing!” rant blasting the Fed for its lack of diligence.

Back in 2008 and 2009, millions of Americans lost their jobs within a matter of months.  Many of you that are reading this article know all about it, because it happened to you personally.

The same thing will happen again, and now it looks like it may happen a lot faster than most of the “experts” were projecting.

There is also another troubling piece of news that I would like to share with all of you.

On Friday, the latest NY Fed report came out, and we learned that U.S. household debt is now 837 billion dollars higher than it was during the previous peak in 2008

Total household debt, driven by a $9.1 trillion in mortgages, is now $837 billion higher than its previous peak in 2008, just as the last recession took hold and brought on massive deleveraging across the United States. Indebtedness has risen steadily for more than four years and sits more than 21 percent above a trough in 2013.

The $219 billion rise in total debt in the quarter ended September 30 was the biggest jump since 2016.

Our entire “economic recovery” has been fueled by debt, and so those numbers are not that surprising.

But the troubling part of the report is the fact that debt delinquency rates have now risen to the highest levels in 7 years

Aggregate delinquency rates worsened in the third quarter of 2018. As of September 30, 4.7% of outstanding debt was in some stage of delinquency, an uptick from 4.5% in the second quarter and the largest in 7 years. Of the $638 billion of debt that is delinquent, $415 billion is seriously delinquent (at least 90 days late or “severely derogatory”). This increase was primarily due to a large increase in the flow into delinquency for student loan balances during the third quarter of 2018. The flow into 90+ day delinquency for credit card balances has been rising for the last year and remained elevated since then compared to its recent history, while the flow into 90+ day delinquency for auto loan balances has been slowly trending upward since 2012.

In other words, Americans are getting behind on their debts to a degree that we have not seen since the U.S. economy was coming out of the last recession.

This is a very clear indicator that the U.S. economy is really slowing down, and if delinquency rates keep rising that is going to mean big trouble for U.S. financial institutions.

Of course U.S. consumers are not the only ones with a massive debt problem.  Corporate debt has more than doubled since the last financial crisis, state and local government debt levels are at record highs, and the U.S. government is now almost 22 trillion dollars in debt.

Perhaps if we had not spent six trillion dollars on wars in the Middle East since 2001, we would be in much better financial shape as a nation.

The Bubble to End All Bubbles, which some have dubbed “The Everything Bubble”, appears to be starting to burst and that is likely to mean tremendous chaos for global financial markets.

And without a doubt, this was another very tough week for Wall Street.  All of the major indexes were down significantly, and tech stocks got hit particularly hard

The S&P 500 fell 1.6 percent this week, while the Dow Jones Industrial Average and Nasdaq Composite both declined more than 2 percent.

Technology, the biggest sector in the S&P 500 by market cap, was the second-worst performer this week, falling 2.5 percent. The sector dropped following a 5.4 percent decline in Apple. Wall Street analysts worry iPhone sales will slow down. Tech-related shares like Amazon and Netflix were also down 7 percent and 5.7 percent, respectively. Sharp losses in Nvidia dragged down the chips sector and the overall tech sector on Friday.

For the past couple of years we have been enjoying a time of relative economic and financial stability, but most Americans used that time to party instead of to prepare.

Now that period of stability is ending, and a very uncertain future is ahead.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

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