Part 7/11:
A critical aspect of this unfolding crisis is the deterioration of credit quality and liquidity. Auto loan delinquencies are approaching levels last seen during the 2008 crisis, with serious delinquencies climbing back to levels not observed since 2010. Student loan delinquencies have surged to new records, reflecting the strained incomes and employment instability faced by borrowers.
Similarly, the overall serious delinquency rate in credit card debt increased to 12.41% in Q3 2025, its highest since early 2011 and just below levels seen during the 2009 recession. These indicators suggest that financial distress is intensifying even before the economy fully transitions into a more severe downturn.