One of the most frightening aspects of a nationwide financial crisis is that it has an intense domino effect. The crisis would not only penetrate all corners of the country, but could ultimately spread to the rest of the world. Resources could quickly become depleted, violence could erupt, the value of money could plummet and jobs could become few and far between. We must notice the signs of such an event occurring so that we can properly prep for it and mitigate its effects.

1. The Auto Loan Bubble.

Subprime auto loan default rates are surging and are closely matching the mortgage defaults we saw just before the crash of 2008.

In December 2016, New York Federal Reserve researchers found 6 million Americans were delinquent with car payments and predicted that number would only worsen.

According to Debt.org, 30% of car loans now stretch between 72 and 84 months. The average amount financed in 2015 was $28,711 with average monthly payments of $485, a record high for both lengths of loan and amount financed.

2. The Student Loan Crisis.

There has been a debt explosion for students, with student loans growing from $260 billion in 2004 to $1.31 trillion last year. According to the Federal Reserve’s most recent Household Debt and Credit Report, the student loan default rate is 11.2%, which is almost where the peak mortgage default rate was at in 2010.

So many of these loans were given to people who have zero collateral and zero chance of paying them back.

3. Retail Apocalypse: 8,000 stores expected to close in 2017

“Thousands of new doors opened and rents soared,” Richard Hayne, chief executive of Urban Outfitters Inc., told analysts last month. “This created a bubble, and like housing, that bubble has now burst.”

4. Retailers Are Going Bankrupt at a Record Pace

In the first three months of this year, 14 retail chains have filed for bankruptcy protection or liquidation.

In 2016, there were 18 bankruptcy filings for the entire year.

5. Consumer bankruptcies are rising at the fastest pace since the last recession.

The following numbers come from Wolf Richter:

In December, bankruptcy filings rose 4.5% from a year earlier. In January they rose 5.4%. It was the first time consumer bankruptcies rose back-to-back since 2010.

In March, consumer bankruptcy filings rose 4% year-over-year, to 77,900, the highest since March 2015, when 79,000 filings occurred, according to the American Bankruptcy Institute data.

Total US bankruptcy filings by consumers and businesses in March spiked 40% from February and rose 4% year-over-year to 81,590, the highest since March 2015.

6. Six out of every ten Americans can’t cover a $500 emergency.

According to CNN, 6 in 10 Americans don’t have $500 in savings.

Only 41% of adults say they have $500 to cover either a surprise bill or an emergency.

7. We are still $20 Trillion in debt!

The latest government projections show that we have over $127 trillion in unfunded liabilities. In fact, the Social Security Administration says that by 2034 payroll taxes collected will only pay for about 79 percent of scheduled benefits.

To learn about prepping for an economic crisis, read this article.

Are you concerned about the country facing an economic meltdown?

Article Source: Off Grid Survival