Ominous signals are surfacing, pointing towards an imminent and severe economic crisis for the United States.

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Buckle up, America! The signs are clear, and they’re not pointing towards mere challenges but a looming economic catastrophe. The U.S. housing market, a historical indicator of economic health, is in a deadlock, and it’s sending shockwaves through the nation.

With 30-year mortgage rates hitting two-decade highs, buying conditions have plummeted to levels unseen since 1960, a grim foreshadowing of past severe economic downturns. The housing market, sensitive to interest rate changes, is sounding the alarm.

Adding to the distress, businesses are facing tightening credit access. Over 30% of domestic banks are imposing stricter lending standards, reaching a concerning 50.8% in Q3 2024—a level historically synonymous with recession.

Consumers are feeling the pinch too, tapping into savings to cover holiday spending. More than one-third of households are depleting their cash reserves, painting a grim picture of financial strain.

While Wall Street economists are optimistic, caution is advised. In 2023, they were equally confident, only to be proven wrong. As per Bob Farrell’s Rule #9, “When all experts agree, something else tends to happen.”

The US Dallas Fed Services Revenues Index further underscores the urgency, hitting a worrying low not seen since the depths of the 2020 crisis. Excluding the pandemic, it’s the worst since September 2009. The stark reality is that it now requires $119.27 to buy what $100 could pre-pandemic, signaling a rapid erosion of purchasing power.

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The message is loud and clear: the U.S. is hurtling towards an economic abyss, and decisive action is needed to avert disaster. The time to act is now.

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