Corporate America is buckling under the weight of rising debt, and the numbers don’t lie. At the end of 2024, more than $28 billion in business loans were at least a month overdue—a surge of $2.2 billion in just three months. Meanwhile, consumer debt has hit all-time highs, and savings accounts are vanishing at a record pace. Wasn’t this supposed to be the “great Biden economy” we were promised?
Auto loan delinquencies are flashing warning signs not seen since the depths of the Financial Crisis. More than 3% of auto loans were seriously delinquent in Q4 2024—worse than in 2001, worse than 2020, and eerily close to the 2008 collapse. Bloomberg confirms that credit card delinquencies are also at their highest level since the Financial Crisis. The situation is spiraling, and America’s private sector is already in recession.
Total household debt swelled by $93 billion in just three months, pushing the total to a staggering $18.04 trillion. Meanwhile, corporate loan defaults are rising at the fastest pace in nearly a decade. This isn’t just a warning sign. This is the market bracing for impact.
Even with these red flags waving, Biden admin insists nothing needs to change. Kamala Harris even said she “wouldn’t change a thing” about Biden’s economic policies. Maybe that’s because there’s nothing left to fix.
Sources:
https://www.ft.com/content/3a9f63e8-82e7-4a68-8146-c35fff1bce7d