The Auto Loan Bubble
Consumers have been taking out auto loans at an unprecedented rate. Our ability to borrow is going to dry up and so are all the jobs associated with it.
- Auto parts
The Student Debt Bubble
Americans owe over a Trillion dollars in their student loans. This is going to dry up as well and so are all the jobs associated with higher education.
- Faculty / Administration
- Campus Maintenance
The Consumer Debt Bubble
Consumers are borrowing money from their credit cards to buy things and go on vacation. Some are even doing so just to make ends meet. But consumers will not be able to borrow endlessly and once this method of cash dries up there’s going to be carnage in the employment market.
- Gas Stations
- Grocery Chains
- Travel Sector
The Government Debt Bubble
The biggest problem with government debt is that it needs to be repaid. The Federal Government is not the only government we’re talking about here. States and Municipalities are in loads of debt and once they begin to cutback out of necessity, a whole host of public sector jobs are going to be done away with.
The Stock Market Bubble
The mother of all bubbles. Thanks to 0% financing and quantitative easing, the stock market has soared to an unprecedented high and will come down. We just don’t know when. And when it does, companies that engaged in stock buybacks are going to be sitting on a ton of losses. They will cut jobs to increase profits. Folks who are living off of their 401ks will also be cash strapped and that will further strain consumer spending.
The stock market is central to the feedback loop. As soon as one of the bubbles above pops, the stock market will take a hit and further depress the economy.