December 26, 2025
America’s national debt has now surpassed $38 trillion. What’s more alarming? Over $1 trillion a year is going just to pay interest. That’s money that can’t be spent on programs like Social Security or Medicare—and it raises serious questions about long-term fiscal stability.
The $3 trillion private credit market is booming, but trouble is brewing. Tight margins, rising borrowing costs, and looser oversight have analysts warning of a wave of defaults next year. Retirees with exposure to private debt markets may want to reassess their risk.
Top executives at a major subprime auto lender were indicted for inflating loan performance. This echoes the early signs of the 2008 crisis—where bad debt was repackaged and sold to investors, only to unravel under pressure.
The Fed cut interest rates again—but this isn’t a celebration. Instead, it reflects growing concerns about slowing growth and rising unemployment. For retirees, it could mean lower yields and fewer safe income options.
Despite headlines about market rallies, the foundation isn’t strong. Central banks are pumping in liquidity, but real economic momentum is lacking. That disconnect leaves portfolios exposed if confidence takes a sudden hit.
