Rising student loan and household debt in the U.S., along with several other economic factors, have financial experts predicting an impending crash that could rival the Great Depression.
Goldman Sachs predicted this year's U.S. fiscal outlook will be "not good" and U.S. household debt has been increasing since the 2008 housing crisis led to American taxpayers bailing out the big banks.
In 2018, experts say a $247 trillion global debt will be the main reason behind the next cataclysmic financial crash. Additionally, low wages and the U.S. national debt's steady rise are expected to drag down the economy.
Economists don’t believe positive indicators — like low unemployment and increased business confidence — will last through President Donald Trump’s first term, Newsweek said.
Murray Gunn, chief of global research at Elliott Wave International, told the [New York] Post, "We think the major economies are on the cusp of turning into the worst recessions we have seen in 10 years. Should the [U.S.] economy start to shrink, and our analysis suggests that it will, the high nominal levels of debt will instantly become a very big issue."
Household debt has skyrocketed since 2008:
Outstanding student loan debts have simultaneously increased from $611 billion of unpaid debts in 2008 to more than $1.5 trillion today. Automobile loans have far exceeded their 2008 peaks, sitting at about $1.25 trillion today and unpaid credit card balances are just as high as the years leading up to the Great Recession.
And global debt has more than doubled as central bankers have injected economies with cash since the last financial crisis: in 2008, global debt was at $177 trillion, but today it sits at $247 trillion.
“We won’t be able to call it a recession, it’s going to be worse than the Great Depression,” economic commentator Peter Schiff told the Post. “The U.S. economy is in so much worse shape than it was a decade ago.”
“I think we are going to have a dollar crisis — you think the Turkish lira looks bad now, wait till you see when the dollar is imploding and we have a sovereign debt crisis in the US,” he told the Post. “The U.S. government is going to be given a choice between defaulting on the debt, or else massive runaway inflation.”