Elizabeth Warren Is Warning That An “Economic Crash” Is Coming
Elizabeth Warren Is Warning That An “Economic Crash” Is Coming by Michael Snyder for The Economic Collapse Blog
Democratic presidential candidate Elizabeth Warren is sounding the alarm. In an opinion piece that she put out on Monday, she boldly warned that an “economic crash” is coming. Actually, much of her article sounds like it could have come directly from the pages of the Economic Collapse Blog, and her analysis of the current state of the U.S. economy was right on the money. Of course her proposed “solutions” are completely and totally nuts, and we will discuss that later in the article. But it is quite remarkable that a woman that has a really, really good chance of becoming the next president of the United States is saying so many of the exact same things that I have been saying. For example, just consider this paragraph…
When I look at the economy today, I see a lot to worry about again. I see a manufacturing sector in recession. I see a precarious economy that is built on debt — both household debt and corporate debt — and that is vulnerable to shocks. And I see a number of serious shocks on the horizon that could cause our economy’s shaky foundation to crumble.
Everything that she said there is true. The manufacturing sector is definitely slowing down, and without a doubt U.S. households are drowning in debt.
In another paragraph, Warren elaborated on the unprecedented debt problems that U.S. families are currently facing…
A generation of stagnant wages and rising costs for basics like housing, child care, and education have forced American families to take on more debt than ever before. The student debt load has “more than doubled since the financial crisis.” American credit card debt matches its 2008 peak. Auto loan debt is the highest it has ever been since we started tracking it nearly 20 years ago, and a record 7 million Americans are behind on their auto loans — many of which have similar abusive characteristics as pre-crash subprime mortgages. 71 million American adults — more than 30% of the adults in the country — already have debts in collection. Families may be able to afford these debt payments now, but an increase in interest rates or a slowdown in income could plunge families over a cliff.
That is a fantastic paragraph, and once again everything that she said there is completely accurate.
Today, 59 percent of Americans are living paycheck to paycheck, and even a mild recession would be absolutely disastrous for tens of millions of American families. During the coming recession we are likely to see debt defaults go through the roof, and Warren has correctly identified how vulnerable we are right now.
And she also accurately detailed the problems that the U.S. manufacturing sector is facing…