I have a degree in Economics, and while I am more of a ‘marketing guy,’ my gut instinct is that the latest economic news is really, really bad news.
A car payment is the second-most important expense Americans make, right behind the rent or mortgage. If you don’t have a car, you probably can’t get to work. And if you can’t get to work, you will go broke.
More than 7 million Americans are 90 days or more behind on their vehicle loans as of the end of 2018, according to data released Tuesday by the New York Federal Reserve. That’s more than 1 million higher than the peak in 2010 as the country was recovering from its worst downturn since the Great Depression.
“The substantial and growing number of distressed borrowers suggests that not all Americans have benefited from the strong labor market and warrants continued monitoring and analysis of this sector,” Fed economists said in a report that accompanied their quarterly look at U.S. consumer debt.’
This is a very bad sign, and totally pokes a huge hole in Donald Trump’s claim that the U.S. economy is soaring. More like sinking.