Credit Card Debt in the USA
The debt level of US citizens on credit cards surpassed 900 billion US dollars last summer. This high debt burden could lead to an increased default rate, especially during economically challenging times.
The high credit card debts pose the risk of a second major wave of write-offs for US banks, similar to the burst real estate bubble. This could further destabilize the financial system. A more restrictive credit card issuance policy by banks could additionally burden the US economy, as it would limit consumption.
Real Estate Market in the USA
The real estate market is suffering from various challenges, including potentially falling prices and decreased demand. This could affect the overall economy, as the real estate market is often viewed as an indicator of general economic health. The current situation resembles the real estate bubble that led to a global financial crisis in 2008. Similar risks could re-emerge if the debt burden and economic conditions are not improved.
Impacts on Investors in German-speaking Regions
The US economy has a significant influence on the global financial situation. A credit crisis in the USA could lead to a deterioration of the global economic landscape, which could affect investors in German-speaking regions. Investors should closely monitor developments in the USA to adjust their investment decisions accordingly. A potential credit crisis could lead to increased market volatility and affect returns.
US National Debt
The US national debt reached 36.9 trillion US dollars in May 2025. This high level of debt may limit the government’s ability to respond to economic challenges and could increase interest rates, which in turn would affect borrowing costs.
In conclusion, the skyrocketing credit card debts and the issues in the real estate market in the USA are signs of a potential credit crisis that could impact the global financial situation. Investors in German-speaking regions should closely watch these developments to adjust their investments accordingly.