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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Labor Market Deterioration Is Clear
- October layoffs were the worst for any October in 15 years and severance for many federal workers expired at end-September.
- Danielle DiMartino Booth argues these facts signal the labor market has materially worsened and the Fed should act.
Essentials Drive Retail Strength
- Walmart's strength reflects spending on essentials like pharmacy and groceries, while discretionary spending falls.
- Shoppers are trading down to discount retailers rather than fueling big-ticket purchases at places like Home Depot.
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.