The most recent data out of the New York Fed is ominous. The current auto loans that are in serious delinquency (meaning that they are over 90 days past due) has jumped to a percentage of 4.69 percent for first quarter 2019. In the darkest days of the Great Recession, they only peaked a bit higher at 5.27 percent. These car loan delinquencies have now stretched up to their greatest amount dating back to 2011 and are nearing those scary Great Recession peaks. In actual dollars, the debt of delinquent auto accounts is already massively higher than witnessed in the… Read More

This past week, the Federal Reserve released their most recent report on consumer debt. It did not paint a pretty picture. Overall consumer debt increased by a sobering $10.3 billion for March. This brought it up to an all time high of over $4 trillion ($4.05 trillion to be exact). The chart below shows the year long trend in consumer debt: This means that through the conclusion of the first quarter in 2019, the total American consumer indebtedness rose at a yearly rate of 4.25 percent. Yet March's increase was a mere 3.1 percent. This March total actually came in… Read More

Last week, the U.S. Treasury revealed that it will not need to borrow so much money for the third quarter of 2019 as it had originally forecast. This had many people scratching their heads. The reason has nothing to do with the government reigning in its spending though. Reuters demystified the mystery in a cite from a Treasury official. His statement explained this as changes having to do with fiscal activity. The Treasury official put a positive spin on it with: "The fiscal change related to the Fed's plans to stabilize its massive portfolio of bonds relative to the size… Read More

The most recent Treasury Report is out and it reveals disturbing news. The net worth of the United States is now officially reduced to minus $21.5 trillion. The country's total national debt has catapulted up to pass $22 trillion. Every month, President Trump's administration adds to the debt pile with multiple billion dollar deficits. This graph depicts the shocking rise in national debt: The real question is: Can the government indefinitely sustain this debt fiasco? Economist and analyst Wolf Richter argues that the United States is in a select club of financially troubled nations. The U.S. shares the deteriorating financial… Read More

The key metric for U.S. manufacturing did not grow in March, data released this week revealed. This statistic followed two consecutive months of declines. Together, it led to the first quarterly production drop within the presidency of Donald Trump. This was especially disconcerting news as observing economists had forecast a minor rise in March's manufacturing numbers. For the first quarter of 2019, the factory production metric declined 1.1 percent on an annualized rate as the graphic below demonstrates: Reuters commented on the decline with their own explanation, stating: "Soft manufacturing and slowing economic growth reflect the ebbing stimulus from a… Read More