Below I've compiled the comprehensive and UPDATED cheat sheet of key stats, metrics, comparisons, country-specific financial issues, reports, anecdotes, and trends from financial advisors and trusted sources. This collection aims to provide a clear picture of what's truly happening in the economy.
So, whenever someone says: "BUT THE STOCK MARKET IS JUST AWESOME!", you can respond with any and all of these points.
The Big Picture
After the pandemic stimulus showered everyone with cash, we partied like rock stars, igniting a demand boom and overstuffing supply chains. But now the free-money buzz has worn off, and we're waking up with a massive economic hangover—warehouses packed to the brim, prices nosediving, and an economy stumbling as it sobers up from the stimulus high. Job-losses will follow.
Tracing Back to COVID-19
When the pandemic hit, government stimulus checks artificially inflated incomes by 20%, sparking a massive spending spree. Prices naturally rose as industries responded to booming revenue. But then, the government stopped the stimulus checks, demand faltered, and inflation surged as supply chains struggled to catch up.
Now, we're seeing the consequences:
Retail warehouses are full of unsold goods.
Demand for shipping has plummeted, causing freight rates to tumble.
Oil prices are dropping as shipping companies struggle.
Companies are laying off workers, and the idea of a "soft landing" is quickly fading away.
This deflationary trend isn't a relief—it's a warning sign of a much larger economic issue.
Anecdotes First!
Companies and Economic Trouble
Ally Financial
Shares Plunged: Stock dropped up to 20% due to intensified credit challenges.
CFO's Warning: Russ Hutchinson highlighted that borrowers are struggling with high inflation, rising cost of living, and weakening employment.
Rising Delinquencies: There's a growing pool of borrowers in later-stage delinquency buckets.
Citigroup
Credit Losses Rising: Consumers are shifting spending to essentials, leading to increased credit card losses.
Payment Rates Falling: CFO Mark Mason noted that payment rates have started to "come down a bit," indicating financial strain among consumers.
Bank of America
