Most People Have No Idea What Is Coming Danielle DiMartino Booths Last Warning

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Most People Have No Idea What Is Coming - Danielle DiMartino Booth's Last Warning • Join this channel to get access to perks: • / @financeflowofficial • Recent economic revisions show the U.S. private sector created 1.4 million jobs in the year through March 2024, down from an initial estimate of 2.4 million. This slowdown in job creation raises concerns, as consumer spending drives nearly 70% of U.S. GDP. Additionally, “part-time employment” has surged to levels seen during the Great Recession, reflecting growing financial strain. Meanwhile, household bankruptcies have spiked 22% year-over-year, while significant banks face rising losses, highlighting further stress among consumers. • The speaker, Danielle DiMartino Booth, is a former Federal Reserve Bank of Dallas advisor and a prominent financial analyst. She gives a general overview of the current market situation. She emphasizes that initially, markets anticipated seven rate cuts, but as the economy shows strength, this outlook has become less aggressive. However, it's premature to predict rate cuts for 2025 given rising concerns, like the 17-month increase in unemployment benefit exhaustion, a pattern typically seen in recessions. The growing U.S. deficit and rising interest expenses also limit other fiscal spending. • Danielle highlights fiscal spending should be carefully designed. Recent news surrounding U.S. fiscal spending highlights significant concerns about rising deficits and national debt. The Congressional Budget Office (CBO) projects that the U.S. could face persistent deficits averaging 2.1% of GDP over the next decade, with net interest payments on debt projected to nearly double by 2034. The debt-to-GDP ratio is expected to rise from 97% today to 116% in 2034. • Merging banks today is harder than in 2008-2009 due to the significant losses banks would need to absorb, making FDIC-brokered mergers more difficult. While lowering interest rates could reduce some of these losses over time, it would happen slowly and come at a cost—each 50 basis point rate cut reduces retirees' and savers' income by around $67 billion. Danielle additionally exposes banks to substantial losses in their securities portfolios, and there's still the looming issue of unrealized losses in their commercial real estate loans. • Danielle's concerns about liquidity are drying up, with commercial and industrial lending nearly at a standstill, except for growth in private credit. Banks have been pulling back on auto and credit card loans, and rising charge-offs signal a classic credit crunch, even as the stock market hits highs. Despite potential rate cuts, banks are unlikely to quickly lower consumer borrowing costs as they deal with ongoing loan losses. While natural disasters may temporarily boost auto purchases through replacement cycles, it's not a sign of a strong private sector. • Economists expect the U.S. unemployment rate to reach 4.5% by the end of 2025. Danielle specifically points out that if layoffs continue, especially during earnings season, shelter inflation—currently a major driver of overall inflation—could decline. Census data shows only about 50% of new apartments are rented, signaling oversupply and affordability issues, which may further reduce shelter costs. Meanwhile, money market fund assets have increased as interest rates drop, and corporate insiders are selling their stocks despite projecting confidence to the public, indicating internal caution. • Share this video with a friend if you found it useful! Consider subscribing to the channel for videos about investing, business, stock market, managing money, building wealth, passive income, and other finance-related content! • • -------------------------------------------------- • • 🎥 We own commercial licenses for all the content used in this video except parts about the topic that have been used under fair use and it was fully edited by us. For any concerns, business inquiries, etc. please contact us via email in the “About” section of the channel. Some links above are affiliate links. Anything displayed on this channel should not be seen as financial advice. Each person has a unique experience, and there is no guarantee of future profitability or success. • #economy #stocks #gold #silver #investment #financialanalysis #stockmarket #danielledimartinobooth

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