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Economic doomsday preppers predicting the US economy will collapse

May 13, 2024 - businessinsider.com
The subreddit r/economiccollapse has seen an 80% increase in membership from the end of 2021 to the end of 2023, with users preparing for a potential Soviet Union-type collapse of the US economy. This includes investing in defense stocks and avoiding holding savings in cash. The rise in interest in economic downfall is reflected in a 17% and 15% increase in searches for "stock market crash" and "economic crash" respectively.

The article also highlights concerns about the US economy, including high mortgage rates, increasing house supply, and houses worth less than their financing mortgages. The stock market's strength is largely due to AI, but there are concerns about the exaggeration of companies' involvement in AI. Despite a low unemployment rate, job growth slowed significantly in April, and high earners are finding it difficult to switch jobs. The number of companies filing for bankruptcy is increasing, and interest-rate cuts continue to be delayed, leading some experts to speculate that the economy will need to crash before cuts are implemented.

Key takeaways:

  • A group on the subreddit r/economiccollapse is preparing for a Soviet Union-type fall of the US economy, with the subreddit's membership growing 80% from the end of 2021 to the end of 2023.
  • Searches for "stock market crash" and "economic crash" rose 17% and 15%, respectively, indicating a growing interest in the potential downfall of the economy.
  • There are concerns about the housing market and the stock market, with more houses in the US worth significantly less than the mortgages financing them and companies exaggerating their involvement in AI, potentially leading to a crash.
  • Job growth slowed in April, and the number of companies filing for bankruptcy is increasing, leading some experts to speculate that the economy will need to crash before interest-rate cuts come.
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