Bryanna Hambrick bought a three-bedroom home in Columbus, Ohio, in 2022 hoping to build wealth, but her monthly payment ended up nearly $1,200, about $200 more than expected, after a property tax reassessment and a higher mortgage rate. Closing costs and unexpected repairs have kept her living paycheck to paycheck. Experts warn that labels like 'good debt' for mortgages and student loans can downplay risk, and former FDIC chair Sheila Bair says the presumption should always be against debt. Borrowers should run their own affordability calculations, plan to stay in a home for at least five years, and treat debt as a business decision with realistic expectations, according to financial psychologist Brad Klontz. The article also recalls about 3.8 million foreclosures between 2007 and 2010, according to a Federal Reserve Bank of Chicago analysis.
Summary written by Upside AI from the original article. Read the source for full details.
Related news
- College was supposed to be ‘good debt.’ For many borrowers, it isn’t paying off
Student loans were long seen as “good debt,” but soaring tuition, changes to the federal lending system and a volatile job market are prompting many borrowers to question that. More than 42 million Americans now carry federal education debt totaling over $1.7 trillion, up from about $516 billion and 28 million borrowers 20 years ago. Average annual tuition and fees at a private four-year college rose from $14,550 (inflation-adjusted) in 1971-72 to $45,000 in 2025-2026, while the number of borrowers owing over $100,000 grew from 2.4 million to 3.8 million in the past decade. The article also notes that the “one big beautiful bill” act (OBBBA) eliminated several repayment plans and cut borrower safeguards, while AI is disrupting entry-level hiring.
- Why You Should Think About Palantir Differently Now
Palantir (PLTR) trades at 78.2 times sales, versus 3.1 for the S&P 500, and management's pitch has shifted from customer counts to spending per client. In fiscal Q2 2026, executives emphasized 'sovereign AI', an architecture in which companies keep full control of their data and the AI built on it. U.S. commercial customers reached 653, up 35%, while U.S. commercial revenue rose 149% to $764 million and U.S. contract values rose 153% to $2.132 billion. Total revenue grew 92.8% to $1.94 billion, and operating margin rose to 47.1% from 26.8%. However, the top 20 customers accounted for about 40% of total revenue over the twelve months to June 2026, which the article identifies as the main risk.
- Jamie Dimon Sharpened His Warning About a Looming Corporate Credit Squeeze, Saying Global Competition for Capital Means "The Market Will Ask for More." Here's Why That Warning Matters for Borrowers and Bond Investors.
JPMorgan Chase CEO Jamie Dimon warns that the bond market is showing stress, as U.S. Treasury yields have surged and the 10-year Treasury recently hit its highest yield in 24 years. He is concerned that a global bond sell-off could spill into corporate credit, raising borrowing costs and leading to defaults, credit downgrades, job losses and possibly a stock market crash. The article notes that AI hyperscalers are borrowing hundreds of billions of dollars to buy semiconductors and build data centers, creating more competition for capital in the bond market. The Vanguard Total Bond Market ETF (BND) has returned negative 2.72% year to date and negative 3.45% over the past three months. Companies rated below investment grade would face the most pressure if borrowing costs keep rising.
- Who gets to have 'good debt'? A sociologist, theologian, philosopher and other experts weigh in
CNBC asks experts from sociology, philosophy, history and other fields who gets access to 'good debt', meaning borrowing that helps build wealth, and finds that affordable credit has never been equally available. Princeton sociologist Frederick Wherry describes the 'Matthew effect', under which wealthier people are more likely to have good debt, while the middle class is hit hardest because it is largely left on its own. Philosopher Graham Hubbs says good debt is tied to happiness but is becoming harder to reach as home and college costs rise faster than incomes. Historian Louis Hyman says attitudes shifted from viewing all debt as bad to embracing installment lending from the 1920s, and describes access to credit as a two-tier system.
- She made college 'good debt' for herself. Can she do the same for her daughter?
Stephanie Thomas, a certified financial planner in Raleigh, borrowed about $20,000 for college more than 25 years ago and considers it 'good debt' because she could pay it down manageably. For her daughters, she and her husband saved in 529 plans, and her youngest is taking college-level courses through dual enrollment, a tactic whose use rose 9.6% according to the National Student Clearinghouse's spring 2026 report. Between 1995 and 2025, inflation-adjusted tuition and fees rose 74% at private four-year schools and 101% at public ones, and nearly half of families now borrow to pay for college, pushing student debt to $1.85 trillion. Early-career job prospects are also less certain, as entry-level postings in the U.S. fell 35% since January 2023, leading many families to question the value of a degree.
- Nasdaq sinks more than 2 % as investors raise questions about AI debt
Related markets
Latest news
- Intel stock pops after JPMorgan gives a Neutral upgrade
JPMorgan (JPM) upgraded Intel (INTC) to Neutral from Underweight. The note points to improving execution under CEO Lip-Bu Tan, potential foundry customers for next-generation manufacturing, and rising earnings estimates for 2027 and 2028.
- Intel leads chip stocks higher as investors jump back into AI trade
Chip stocks rebounded on Monday as investors bought the dip after last week's steep AI trade sell-off. The PHLX Semiconductor Index (^SOX) rose 2%, reversing a recent semiconductor rout. Intel (INTC) jumped 5% after JPMorgan upgraded the stock to Buy, citing "solid execution." Nvidia (NVDA) and AMD (AMD) also gained, while a Goldman Sachs upgrade of CoreWeave (CRWV) to Buy from Neutral helped lift AI sentiment. Arm Holdings (ARM), Micron Technology (MU) and SK Hynix (SKHY) also rebounded after sharp declines last week.
- Netflix stock is down roughly 25% in 2026 as Q3 earnings loom
Netflix (NFLX) reports third-quarter results after the bell on Tuesday, with the stock down more than 25% this year and closing Friday near $70, versus $93.76 at the end of 2025. Investors are worried about slowing viewership, competition from YouTube, and live sports moving to Amazon Prime Video and HBO Max. Last week Netflix cut about 6% of its workforce (roughly 1,000 employees) and named Peter Rice its new chief content officer, and five firms lowered price targets in October. Analysts expect EPS of $0.82 on revenue of $12.88 billion, up about 12% from a year earlier, in line with Netflix's own forecast. KeyBanc's Justin Patterson wants more content investment, product changes, expense cuts and a possible first-ever dividend.
- Cleveland-Cliffs Jumps 10% on Strongest Quarter in Three Years; Nucor and Steel Dynamics Edge Higher
Cleveland-Cliffs (CLF) rose 10% to $13.29 after reporting third-quarter adjusted EBITDA of $612 million, beating its $575 million guidance and up sharply from $143 million a year earlier. Revenue of $5.61 billion missed the $5.72 billion expected, though sales rose 18.6% year over year on a higher average net selling price of $1,177 per ton and larger shipments. Management said imports remain well below historical levels, but it indefinitely idled the galvanizing lines at its Canadian unit Stelco due to oversupply. The company guided to about $715 million of adjusted EBITDA in Q4 and said 2027 adjusted EBITDA should exceed $4 billion based on current index price forecasts. Its target is to bring net debt to EBITDA below 2.5x by mid-2027.
- Tech rebounds as semiconductor stocks jump: AlphaCheck
Stocks were mostly higher on Monday as investors turned their focus to earnings season, with semiconductor stocks rebounding after last week's sharp sell-off. The Tech sector (XLK) rose, led by Nvidia (NVDA), AMD (AMD), Micron (MU) and SK Hynix (SKHY). Intel (INTC) also jumped after JPMorgan analysts upgraded the stock, while CoreWeave (CRWV), hammered last week, rebounded on a Goldman Sachs upgrade. Investors are watching this week's reports from Netflix (NFLX), SpaceX (SPCX), Tesla (TSLA) and Meta (META). The 10-year Treasury (^TNX) yield hovered near 5.1%, while Brent crude (BZ=F) dropped to $108 per barrel and WTI (CL=F) hovered below $98.
- AI capex may be Meta's biggest earnings test
Meta Platforms (META) reports third-quarter earnings after the close on Wednesday, alongside a wave of Big Tech peers. The GAAP EPS estimate is $3.54, though that figure may be messy because a legal settlement will be included and analysts differ on how it will be accounted for. Options imply a 3.2% move in either direction, the smallest since the fourth-quarter report before last. Estimates for next year's capex vary widely: Wedbush near $250 billion, Evercore ISI $210 billion, Bank of America $205 billion and Dan Ives around $194 billion. Most analysts say that spending is acceptable if Meta provides a Muse roadmap and confidence it can monetize it, and the stock is up about seven and a half percent year to date.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.