America Spent the Emergency Fund and Nobody Said a Word

Editor’s Note: Former tech executive Jeff Brown was one of the first to predict SpaceX’s IPO, long before it became the biggest investment story of 2026. He’s been a believer in Musk’s companies from the start — even when most were skeptical. When many were proclaiming the death of Tesla, Jeff doubled down. And it’s up 1,800% since. Now he says Musk is up to something very exciting — a brand-new company that could be worth over $25 trillion. And it’s not SpaceX. Click here for the details or read more below.

Dear Reader,

If you’re thinking about buying the SpaceX IPO, I can’t blame you.

It’s slated to be the second largest IPO of all time.

And it’s worth more than all 90 of 2025’s IPOs — combined.

One analyst called it:

But there’s something you should know — before you invest in SpaceX.

A couple of key issues…

It could happen before the end of this month.

Or he could post it on X tomorrow morning.

When that happens, it will shine a light on a totally different opportunity.

One that could be 14 times bigger than SpaceX’s IPO.

Regards,

Jeff Brown
Founder & CEO, Brownstone Research

► The personal savings rate fell to `2.6%` in April. A year ago it was `5.5%`. That is the lowest reading since June 2022 and signals households are burning through their financial cushion at speed.

► Credit card debt hit a record `$1.25` trillion. The average APR is `21%`. Over `13%` of balances are now `90` or more days past due. That is a `15`-year high for late payments.

► Wages grew `3.6%` this year. Prices grew `3.8%`. Real disposable income fell `0.1%` in April. Paychecks are shrinking in real terms for the first time since 2023.

► The S&P 500 sits near `7,580`. The 10-year yield is at `4.43%`. The VIX is at `16.05`. Markets look calm. Household balance sheets do not.

► Here is the buried story. Economists call it a K-shaped economy. Prime borrowers are fine. Subprime and near-prime borrowers are drowning. When someone says “the consumer is resilient,” they mean half of consumers.

Start with what `2.6%` actually looks like. If your household brings home `$5,000` a month after taxes, you are saving `$130`. That covers one unexpected car repair. One ER copay. One broken appliance. After that, you are on the credit card. And the credit card charges `21%`.

Now here is the part most people miss. Last year’s bigger tax refunds helped families stay afloat through spring. That tailwind fades by July. Gas is at `$4.50` a gallon. Groceries are still running `3.2%` above last year. Once the refund money is gone, spending has to come from somewhere. Right now it is coming from savings that barely exist.

I think the disconnect is what should bother you most. The S&P 500 is near record highs because corporate earnings are strong. Companies are making money. But the people who work at those companies are falling behind. Wages at `3.6%` minus inflation at `3.8%` equals negative `0.2%` in purchasing power. That is not a number you feel in one week. You feel it in six months when your credit card balance is `$800` higher and you cannot explain why.

Sound familiar? It should. More than half of Americans now use credit cards to cover groceries and utility bills. That used to be emergency behavior. Now it is Tuesday.

Total household debt hit `$18.8` trillion in Q1. That is an all-time record. Credit card delinquencies at `90` days or more reached `13.12%`. That is a number we have not seen since the aftermath of the 2008 financial crisis. I do not say that to scare you. I say it because nobody on financial television is talking about it.

They are talking about S&P records. They are talking about AI earnings. They are not showing you the NY Fed data. Subprime borrowers have seen their debt-to-income ratio jump `176` basis points since 2019. One America is building wealth. The other is quietly sinking.

Think about that for a second. The top `40%` by credit score have actually improved their financial position since 2019. The bottom `30%` carry more debt. They earn less in real terms. And they are paying `21%` on balances they used to clear every month. That gap is getting wider, not narrower.

I do not think the stock market is lying. I think it is telling only half the story. If you feel the squeeze, own it. The worst move right now is pretending you are on the side of the ledger that does not need to worry.

If you are comfortable: Check your own savings rate. Pull up last month’s take-home pay and last month’s total spending. Divide what you saved by what you earned. If that number is below `5%`, you are running thinner than you think. Set up one automatic transfer this week. Even `$50` a paycheck rebuilds the buffer.

If you are stretched: Look at your credit card statement. Find the one recurring charge you forgot about. The streaming service you do not watch. The subscription you signed up for in January. Cancel it today. Then take that amount and put it toward your highest-rate card. At `21%` APR, every dollar you pay down saves you real money by next month.

My neighbor’s new SUV is beautiful. But I checked what a `$55,000` auto loan costs at today’s rates. That is `$1,038` a month for `72` months. I will keep my paid-off truck and my savings account. The goal is not to look like you are winning. The goal is to actually be winning.