U.S. Consumers Are Doing EXACTLY What They Did Just Prior To The Crash Of 2008

We never seem to learn from our mistakes.  Just before the financial markets crashed and the economy plunged into a horrifying recession in 2008, U.S. consumers went on a debt binge of epic proportions.  Mortgage debt, auto loan debt and credit card debt all skyrocketed, and so when the economy finally crashed all of a sudden there were millions of Americans drowning in bills that they were unable to pay.  Well, now it is happening again.  According to the Federal Reserve Bank of New York, during the third quarter of 2022 household debt increased at the fastest pace that we have seen since the first quarter of 2008(Read More...)

Natural Gas Rationing Has Begun

The global energy crisis has entered an alarming new stage.  In recent months, natural gas prices have risen to absurd heights and supplies have been getting tighter and tighter all over the planet.  But I did not expect that we would see any rationing yet.  It had been my opinion that we could possibly see some limited rationing once we reached the worst moments of the winter, but apparently things are worse than I thought.  In fact, when I heard about what is going on in Pakistan right now I was absolutely horrified(Read More...)

Bad News Is Good News – Wall Street Greatly Celebrates The Latest Economic And Financial Disasters

Sometimes I think that we truly are living in Bizarro World.  We just witnessed one of the most horrible financial disasters in years, and economic activity is dramatically slowing down all around us, but Wall Street is celebrating.  In fact, the Dow Jones Industrial Average rose more than 1,200 points on Thursday.  Despite everything else that is going wrong, investors were absolutely giddy because the inflation number that was just released was slightly lower than what most experts were anticipating.  A lot of people seem to think that this could mean that the Federal Reserve will soon stop hiking interest rates, but that isn’t going to happen.  Jerome Powell continues to insist that rates will keep going higher until the official inflation rate is back down to about 2 percent, and we are a long, long way from there. (Read More...)

We Just Witnessed A New “Lehman Brothers Moment”, And It Threatens To Unleash A Frenzy Of Panic On Wall Street

Another domino has fallen.  We are being told that the failure of FTX “would be kind of like a Lehman Brothers event”, and at this hour FTX is on the verge of collapse.  There was a chance that FTX could survive when Binance announced a shocking rescue plan, but after looking at the books Binance has reportedly backed out of the deal.  As a result, investors that have poured billions into FTX are likely to lose everything.  And many believe that FTX’s heavily promoted token, FTT, is going to zero.  If you have been waiting for a financial disaster to happen, this certainly qualifies.  A lot of people that were “crypto millionaires” not too long ago are going to be totally wiped out. (Read More...)

U.S. Consumers Will Be Spending Much Less This Holiday Season Because Many Of Them Are Already Tapped Out

This holiday season is certainly going to be far less jolly for millions of Americans.  Yesterday, I detailed 11 signs that economic activity in the U.S. is rapidly declining.  Well, today we have gotten even more bad news.  Thanks to deteriorating economic conditions, Americans plan to buy a lot less stuff this holiday season.  In fact, one survey that was just released has discovered that approximately half the country plans to “buy fewer things” this year… (Read More...)

11 Signs That Economic Activity Is Plunging Off A Cliff

Have you noticed it too?  There has been a dramatic shift in the economy in recent days.  It has been sudden and it has been severe.  All over the country, sales are falling like a rock, inventories are piling up to alarming levels, and large companies are beginning to conduct mass layoffs.  Perhaps it was inevitable that such a downturn would arrive, but the Federal Reserve has made things far worse by rapidly hiking interest rates.  Every other time the Fed has engaged in such a rate hiking binge it has resulted in a recession, and there is no way that we are going to escape unscathed this time around.  The following are 11 signs that economic activity is plunging off a cliff… (Read More...)

Will A Dark Omen On Election Day Be A Sign That The United States “Is On The Eve Of Destruction”?

The level of anger that we are witnessing all over the United States right now is extremely alarming.  Millions of voters on both the left and the right are filled with rage, and I have never seen this country more bitterly divided than it is at this moment.  Interestingly, survey after survey has found that the economy is the number one issue that voters are concerned about.  Our once great economic machine is coming apart at the seams, and the cost of living has become extremely oppressive.  But to be honest, for now the economy is still relatively stable.  So how angry will Americans be once the wheels start coming off and economic conditions really start deteriorating very rapidly? (Read More...)

This Tsunami Of Tech Layoffs Could Soon Be The Largest We Have Ever Seen

This is starting to look like 2008 all over again.  For years, the tech industry was the strongest part of the U.S. economy by a wide margin.  The largest tech firms were raking in billions upon billions of dollars in revenue and their stock prices soared to unprecedented levels.  But now the tech industry has suddenly fallen on difficult times.  Many large tech companies are laying off huge numbers of workers, and we are being warned that even more layoffs are ahead.  If the most prosperous sector of our economy is experiencing this much trouble already, what is the outlook for the rest of the economy as we head into 2023? (Read More...)