The US is experiencing a marked increase in serious delinquencies across multiple consumer debt categories, signaling growing financial distress. In the second quarter of 2025, the share of credit card debt delinquent for 90 or more days reached 12.3%, the highest level since 2011 and just 1.4 percentage points below the all-time peak. Auto loan serious delinquencies rose to 5.0%, with subprime auto loans continuing to face elevated risk of losses. Delinquency rates for high-income borrowers earning over $150,000 annually have surged nearly 20% over the past two years, outpacing increases among middle- and lower-income groups. Concurrently, US corporate bankruptcies have reached recession-era levels, with 446 large bankruptcy filings year-to-date—the highest since 2010—and 71 filings in July alone, the most since the 2020 crisis. Consumer spending in the US has declined by 0.15% at an annualized rate over the past six months, the weakest inflation-adjusted reading in 15 years excluding 2020. Inflation and tariffs, including newly implemented auto tariffs effective August 7, 2025, are key concerns suppressing consumer activity. Meanwhile, Germany's economy continues to contract, shrinking by 0.1% in the second quarter of 2025 and marking six quarters of decline in the last eleven. Industrial production in Germany is down 15% compared to eight years ago, with bankruptcies rising 19.2% year-over-year in July. The German economy is projected to shrink again this year, entering its third consecutive recession, amid challenges linked to fiscal stimulus measures and broader cost and competitiveness shocks.