The 2008 financial crisis led to the Great Recession and millions of jobs lost. It took years for America to recover and many citizens still feel the ripple effects. According to Microsoft co-founder Bill Gates, though, we should be braced for another one.
During a Reddit “Ask Me Anything” last week, when Gates was asked if, in the near future, the U.S. will have another crisis similar to the one in 2008, he offered a blunt response: “Yes. It is hard to say when but this is a certainty.”
He added, “Fortunately, we got through that one reasonably well. Warren has talked about this and he understands this area far better than I do.”
Despite the warning, both Gates and his longtime friend Warren Buffett are generally optimistic about the U.S. economy. In an essay for Time magazine, Buffett stated that years of growth “certainly lie ahead,” and “most American children are going to live far better than their parents did.”
Here’s some copypasta from an old comment…the signs are there…
41% of jobs lost in 08 were High Wage jobs, but only 30% of jobs created since then are High Wage. 37% of jobs lost in the Recession were Middle-Wage jobs, but only 26% of jobs created since then are Middle Wage. And 21% of all jobs lost in ’08 were low wage, service sector jobs…yet a staggering 44% of all jobs created since ’08 are low wage, service sector. This means millions of Americans are literally locked out of the Middle Class.
US Credit Card debt has reached record highs as of Q4 2017, at $1.023 Trillion. This is higher than in ’08. Student Loan debt is at 1.2 Trillion, and rising. Auto Debt is up to $1.2 Trillion, and delinquencies jumped in Q3 and Q4 from 6.5% to 7.2%. Mortgage debt is up, and the average new home price in the US is higher than in ’08, at $250,000. The economy isn’t doing good. The US Middle Class is drowning in debt, and when ’08 part two hits, sooner rather than later, it is going to be a shit show of epic proportions. QE 1-3 only postponed the pain, so enjoy these times now, because the reckoning is coming.
Low wage recovery- www.nelp.org/content/uploads/2015/03/Low-Wage-Recovery-Industry-Employment-Wages-2014-Report.pdf
Credit card debt- www.usatoday.com/story/money/2018/01/08/credit-card-debt-hits-new-record-raising-warning-sign/1014921001/
Auto Debt- qz.com/913093/car-loans-in-the-us-have-hit-record-levels-and-delinquencies-are-rising-fast-too/
Mortgage debt- www.federalreserve.gov/data/mortoutstand/current.htm
Total US household debt- www.nytimes.com/2017/05/17/business/dealbook/household-debt-united-states.html
Student loan debt- bigthink.com/stephen-johnson/what-kind-of-student-is-most-likely-to-default-on-loan-debt
Long in the short of it? We’re fucked.