One day the bubble will burst

It will be 2008/9 on steroids. The US will have the choice of letting banks/lenders fail or just start up the printing presses. I’m glad I’ve got my precious metals:

Not surprising really:

A record 19% of new car buyers now pay $1,000+ monthly, up from under 7% three years ago, as average loan amounts hit $43,582 over 68.9 months.

U.S. credit card debt hit $1.25 trillion in Q1 2026, with average balances up 2.3% year over year.

Student loan debt in the United States totals $1.833 trillion; annual growth resumes following a decline in 2023-24.

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Well, yes. The link tells us that household debt increased by $18 billion from Q125 to Q126. Total household debt is $18.8 trillion, meaning it was an annual increase of less than 0.1%.

  • Inflation over the same period was 3%
  • Delinquency rates showed little change

DB2

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And you didn’t even mention the AI bust.

…and while we are at it, the longer term problem of population bust as the kids we assume will pay off the debt fail to appear.
https://www.nytimes.com/2026/07/11/opinion/population-forecast-birth-rate.html

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I have no illusions that any kids, or anybody will ever “pay off” the debt. One of two things will happen: there will be some sort of catastrophic failure: meteor, nuclear war, ranging pandemic, alien invasion, something and everybody will forget about everything.

Or: we will find ourselves in a position to pay off the debt, over time, but some politician from some party I could name will say “We can afford a tax cut” and there it goes, up in smoke. Again.

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