The next crisis won’t look anything like 2008. That’s what makes it so dangerous. Back in 2008, the signs were clear. There was an obvious housing crisis and a collapse in banking. This time, it’s much more insidious, creeping into different sectors in ways most people don’t notice.
Right now, 4.3 million Americans have been unemployed for 15 weeks or more. This isn’t a typical short-term blip. These people have been out of work for months, and they’re not returning anytime soon. The longer people stay unemployed, the harder it is for them to find new jobs. This is a clear indication of a deeper issue in the economy.
At the same time, FHA loan delinquencies are at 15%, which is a shocking figure. This means one in seven FHA-backed mortgages are overdue. For families who rely on these loans to own homes, this is a severe sign of financial stress that most aren’t talking about.
Things aren’t looking any better in tech and finance. Job rescissions and downgrades in these sectors have jumped by more than 40%. Companies are backing out of deals and scaling down job offers at an alarming rate. Once considered bulletproof, these industries are now starting to collapse under pressure, and it’s happening quietly, away from the public eye.
There’s also a disturbing generational shift occurring in the workforce. Gen X and Boomers are being phased out, while junior staff are being given C-suite titles. The senior leaders, those with decades of experience, are being pushed out in favor of younger, cheaper labor. But those younger employees don’t have the experience or the knowledge to navigate difficult times ahead.
When it comes to student loans, the numbers are staggering. Student loan delinquencies have surged by 289% since payments restarted. This is a crisis in the making. Millions of borrowers are falling behind as they struggle to keep up with their payments. The pause may have ended, but the reality is that far too many Americans can’t afford to repay their debt.
Despite all of these alarming statistics, the media isn’t sounding any alarms. There are no headlines about the rising delinquencies, no major coverage on the millions struggling to find work. Instead, everything is being swept under the rug as if it’s business as usual.
The question is, how long can this go on before the cracks start to show in a major way?