The David Lin Report Layoffs Surge, Delinquencies Soar; How Bad Will It Get? | Danielle DiMartino Booth
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Nov 20, 2025 
Danielle DiMartino Booth, an economist and CEO of QI Research, delves into the troubling state of the economy. She warns of rising layoffs and consumer delinquencies, advocating for aggressive Fed rate cuts amidst contrasting consumer spending trends. Danielle scrutinizes the Fed's optimistic market perception and discusses potential vulnerabilities in equities and credit. She emphasizes the importance of defensive investment strategies and highlights the ongoing issues in commercial real estate and youth unemployment. Tune in for a candid analysis of today's economic challenges.
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Consumer Delinquencies Are Rising Fast
- Delinquencies are rising across personal loans, credit cards, HELOCs and auto loans vintages from 2021-2022 show especially poor performance.
- S&P and TransUnion report delinquency rates at post-crisis highs even among prime borrowers.
Cut Rates And End QT Now
- The Fed should cut the fed funds rate by at least 25 basis points and end quantitative tightening promptly.
- Danielle supports shrinking the mortgage-backed securities book while stopping QT's harsher effects.
Market Cuts Won't Necessarily Inflate Bubbles
- Cutting into all-time high markets risks stimulating further froth, but Danielle says the Fed hasn't cut aggressively enough.
- Macroprudential tools (e.g., higher margin standards) could curb excess without fueling bigger bubbles.