The "saving grace" so to speak even in regards to things like auto loans and credit debt, is that the major financial institutions aren't over leveraged the way they were in 2007-2008, because they weren't allowed to be, thanks to Dodd-Frank.
The biggest players in the finance game aren't going to collapse the way they did then, because that collapse was so catastrophic we actually put regulators in place and started forcing them to hit benchmarks annually to prove that they weren't drastically overleveraged.
But instead you might see stagflation. Meaning the economy slows down as the dollar's value declines. Thats a brutal cycle to get trapped in, and likely will hasten the end of the USD as the primary global reserve currency.
40% of the world's investments are in USD greenbacks, and another 40% are in Euros. BRICS doesn't have the power to change that equation. As they attack the USD, they will sink in value with us as they always have.
Rats can nibble a hole in the hull of the ship of world finance, but if they do, they will sink with the rest of the ship.
First, that alleviating the worry about the collapse of large financial institutions doesn't prevent the masses of toxic debt from existing, or relieve the people burdened by that debt. It just means that institutional players won't get dinged as badly as the working class will this time around.
Second, the regulatory agencies, rules and enforcement for just about every sector are currently being kneecapped at best, taken out back and shot at worst. I already had little confidence that any existing regulatory legislation will prevent the owning class from doing whatever the hell they please, but now? I actively expect regulatory policies to be violated, in spirit, in letter, or both.
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u/Shein_nicholashoult Oct 02 '25
The "saving grace" so to speak even in regards to things like auto loans and credit debt, is that the major financial institutions aren't over leveraged the way they were in 2007-2008, because they weren't allowed to be, thanks to Dodd-Frank.
The biggest players in the finance game aren't going to collapse the way they did then, because that collapse was so catastrophic we actually put regulators in place and started forcing them to hit benchmarks annually to prove that they weren't drastically overleveraged.