Part 4/9:
Amidst these economic pressures lies another layer of concern: rising credit defaults. Consumer, corporate, and commercial real estate defaults are increasingly attracting scrutiny and raising alarm bells within financial circles. Notably, consumer credit card defaults have surged to their highest levels since the financial crisis of 2010. According to financial analytics from Moody's and other reputable sources, while high-income households remain relatively stable, a significant segment of low-income Americans is feeling the squeeze. With savings rates at zero, many are resorting to using credit, only to struggle with maintaining those payments due to increased interest rates.