I don’t know how seriously to take this, but “loans everyone expected to be solid are now headed into default” is exactly what led to the crisis in 2008. See The Big Short, Too Big to Fail and Margin Call for how that all worked out if you’re too young to have lived through it.
If this is accurate and continues, it predicts a devastating economic crisis given Trump has no ability to navigate a crisis like that, and he has surrounded himself with a bunch of utter morons that are no better.
So… basically exactly what one would expect from this administration. The worst possible outcome in every category by every conceivable measurement. I’m beyond panic or outrage at this point. Bring it on.
I’m hoping the bank will run out of money and collapse before they can foreclose my house, let’s goooooooo
2025 tanked my credit score so far.
For those of us stuck in this hell, what do we do to prepare for the worst? I’ve got canned food, water, family and friends network… Do I convert my IRA and 401k to precious metals at this point lol
I wouldn’t worry about an IRA/401k unless you are near retirement. If the entire stock market irrecoverably tanks, you’ll probably have much bigger issues to worry about. Even during the Great Depression, stocks made a reasonable rate of return over most long time frames. It’s just anyone who bought at the peak and had to turn around and sell in a short time that really lost their shirt.
As for the rest, it’ll be a financial hardship, not the apocalypse. Sustainable things like solar to hedge against energy prices and home garden to hedge against food prices are probably the most practical. Also I recommend a bidet so you don’t have to worry about toilet paper — that was a brilliant purchase at the outset of Covid.
If you want to prepare for things to get worse than that, you’re probably into the hording guns and ammo prepper stage.
Well, I WOULD worry about the stability of the USD (and, by extension, US-centric securities) in the long term. To that end, I’ve shifted most of my investments to European and APAC things.
Until oil stops being predominantly priced in dollars (which may very well be coming, to be sure) I think the dollar will recover. That said, I’m well outside of my area of expertise here. No one should take my financial opinion about things more seriously than any other asshole with thoughts.
Honestly, I will not be shocked if the world moves towards an EUR standard to replace the USD standard.
What can I do to prepare as a Canadian for the USD crashing ?
I imagine CAD will also plummet given our relationship with US industries.
I’m not an economist but I’d imagine the tariffs and dedollarization will help y’all in the short term.
