So it seems, otherwise it would have been mentioned in an article that discussed rising default rates on consumer debt. The article correctly notes that unemployment is highly correlated with delinquencies and default. That's of course true, but an important part of the story is the loss of home equity due to plunging house prices.
People who have equity in their homes will rarely default on credit card debt or other forms of consumer credit since they have the option to borrow against this equity. Now that tens of millions of homeowners no longer have the option to borrow against their homes, they are far more likely to default if they lose their job or have a serious health problem.
I’m writing to you today with a sense of urgency that I haven’t felt since I began my journalism career. As executive editor of The American Prospect, I’ve witnessed firsthand how independent journalism serves as a crucial bulwark against the erosion of our democratic institutions. Today, that role is more vital than ever. Can you step up today and show your support?
The winds of authoritarianism are blowing stronger. We’re seeing alarming signs of a coordinated effort to silence critical voices and undermine the very foundations that support progressive causes. As Bob Kuttner presciently wrote in our August 2024 issue, a weaponized IRS could attack the very foundations of the progressive movement. We need readers to step up and help us dig in for the long haul.
We’re falling behind in our spring fundraising campaign, and with so much at stake we can’t afford to come up short. If you value fearless, independent journalism that holds the powerful accountable and defends democracy, now is the time to step up. The American Prospect depends on reader support to stay in the fight. Pitch in today and help us close the gap. Please consider making a donation today.
–David Dayen, Executive Editor
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved
