Senate Banking Democrats : Flashing Red Lights: A Warning for Our Economy

Ranking Member Elizabeth Warren on Trump’s economic chaos, what’s broken, and how we fight back.


Senate Banking Democrats
Apr 10, 2025

Good to blog with you again. I have spent my whole career working as an expert in economics, trying to answer one central question - why are working class families struggling financially?

Before the 2008 financial crash, I was a bankruptcy and commercial law professor ringing the alarm bell as loud as I could about the risks bubbling up in our economy. I called out subprime lenders who were tricking and trapping families. I highlighted how families were getting deeper into debt and borrowing against their homes, and that foreclosure rates were going up. Those flashing yellow lights turned into flashing red lights and, ultimately, set the stage for the financial crisis. Americans lost trillions of dollars of savings, unemployment skyrocketed, and millions of people lost their homes. Nearly 20 years later, many communities still haven't fully recovered.

Today, I’m writing to ring the alarm again about the flashing red lights that our economy may be heading over a cliff, and, once again, could take down millions of working families that are barely hanging on by their fingernails.

Over the last week, markets crashed and talk of a recession intensified. People are rightly worried about job security and whether prices will go up, while businesses everywhere are worrying about how to plan for survival. Unlike 2008 or 2020, today’s economic turmoil is not the direct result of Wall Street recklessness or a once-in-a-generation virus; today’s crisis has been caused by one man: President Donald Trump.
https://senatebankingdemocrats.substack.com/p/flashing-red-lights-a-warning-for?r=5eotbg