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Vote on the winner of this week’s world-famous news haiku competition™ in today’s poll!

Matt Davis — Need2Know Chedditor

News You Need2Know

• Higher income Americans start to fall behind on pa …

• Home sales in January posted biggest monthly decli …

• Anthropic plunges into 2026 A.I. regulation fight

• Free yourself from advertising forever!

• House Republicans rebuke the administration on Ca …

• Luxury travel is surging, bookings up 40%

• Poll of the day: It’s World-Famous-5-7-5™ time

• Poll results: You remembered!

What’s the stock market up to, eh?

$SPX ( ▲ 0.64% ) $DJI ( ▲ 0.47% ) $NDX ( ▲ 0.31% )  

Higher income Americans start to fall behind on payments

A troubling wave of financial stress is sweeping beyond low-income households and into the lives of middle-income Americans, according to a new report from the National Foundation for Credit Counseling (NFCC).

Once considered a resource for low-income borrowers, credit-counseling agencies are now seeing an influx of clients earning around $70,000 annually — well above the pre-pandemic average of $40,000. These individuals are burdened with unsecured debt averaging $35,000, equivalent to about half their annual income, which is a sharp increase from $10,000 prior to COVID-19.

“We are seeing a disturbing shift from discretionary debt to survival debt,” said Mike Croxson, CEO of NFCC, talking about the findings with The Wall Street Journal. The organization’s financial stress gauge has hit its highest level since tracking began in 2018, and Croxson notes that many clients are missing payments despite structured repayment plans designed to be affordable.

“When the financial buffer runs out, the climb in stress isn’t gradual — it’s vertical,” Croxson added.

The economic fallout is widespread. The Federal Reserve Bank of New York reported that household debt delinquency rose to 4.8% in the fourth quarter of 2025, the highest since 2017. FHA mortgage delinquencies have also increased, with 13% of borrowers behind on payments. For countless Americans, financial stability now feels increasingly out of reach.

Consolidated Credit and Money Management International have reported double-digit growth in clients last year, warning that traditional metrics underestimate the fragility within households. As Croxson observed, revolving credit has become "a financial lifeline" for many who are struggling to stay afloat.

Home sales in January posted biggest monthly decline in nearly four years

The U.S. housing market witnessed an 8.4% drop in home sales in January, marking the largest monthly decline since February 2022.

Snowstorms and waning consumer confidence played a key role in slowing the market’s momentum, according to the National Association of Realtors. Sales of existing homes fell to a seasonally adjusted annual rate of 3.91 million, reversing gains seen in three of the previous four months.

Despite falling mortgage rates (which have made home purchases slightly more affordable), stubbornly high home prices and hesitations linked to economic uncertainty are discouraging many buyers. “Improving affordability should have brought more people to the market,” said Lawrence Yun, NAR’s chief economist. “The sentiment about the economy is not there, and of course home buying does require some degree of people’s comfort levels, confidence, to enter the market.”

As the spring season approaches — normally a peak time for home sales — the housing market faces a critical test. My money is on it failing that test #NotFinancialAdvice, but where’s yours?

Quote of the Day

Anthropic plunges into 2026 A.I. regulation fight

Anthropic has announced a $20 million donation to Public First Action, a U.S. political group backing candidates in favor of regulating the AI industry. According to a company statement released Thursday, the decision reflects the tech leader’s belief that “the companies building AI have a responsibility to help ensure the technology serves the public good, not just their own interests.”

Good luck with that.

Public First Action, founded last year by two former members of Congress, actively supports pro-regulation candidates, including Tennessee Republican Marsha Blackburn. Blackburn, currently running for governor, notably opposed federal efforts to preempt states from passing AI regulations. The group’s mission puts it in stark opposition to Leading the Future, another political organization funded by AI heavyweights such as OpenAI president Greg Brockman and venture capitalist Marc Andreessen. Leading the Future, which opposes strict AI rules, has raised $125 million since its formation in August 2025.

As states increasingly pass or consider AI regulations, the AI industry is playing an outsized role in shaping policy. With midterm elections nearing, Anthropic’s donation highlights the growing influence of technology companies in politics and signals heightened tensions over how AI should be governed in the years ahead.

I’m just glad we all find AI so useful, aren’t you? For things like…er…making us more stressed because we have to do so much more work and are pretending we did it ourselves but really, we all know…you know…#ChatGPT

Song of the Day: Samm Henshaw, ‘Hair Down’

“Hair Down” is widely praised as a smooth, groove-led, and laid-back alt-soul track functioning as a "deep exhale" or "soulful reset" from daily stress…just like this newsletter!

Free yourself from advertising forever!

House Republicans rebuke the administration on Canada tariffs

In a rare move, six House Republicans joined Democrats to vote to overturn President Trump’s controversial tariffs on Canada, signaling a crack in GOP alignment with Trump’s aggressive trade policies.

The vote, which passed narrowly at 219-211, marks the first formal House challenge to Trump’s trade agenda. Among the Republicans breaking ranks were Reps. Thomas Massie (R-Ky.), Don Bacon (R-Neb.), Kevin Kiley (R-Calif.), Dan Newhouse (R-Wash.), Jeff Hurd (R-Colo.), and Brian Fitzpatrick (R-Pa.).

Their decision to vote against Trump’s use of a national emergency to impose tariffs reflects growing unease over his tactics. “Any Republican, in the House or the Senate, that votes against TARIFFS will seriously suffer the consequences come Election time, and that includes Primaries!” Trump warned on Truth Social just minutes before the vote.

House Speaker Mike Johnson (R-La.) previously blocked votes on tariff legislation but faced a revolt from within his own party earlier this week, forcing the matter to the floor.

Democrats now plan to step up efforts to challenge other Trump-era tariffs, with House Foreign Affairs Committee Ranking Member Greg Meeks (D-N.Y.) saying he intends to push for a vote on Trump’s tariffs on Mexico.

The resolution will head to the Senate, where it only needs a simple majority to pass. However, Trump is expected to veto it if it gets through.

Tariff revenue helped shrink the U.S. budget deficit by 17% to $697 billion in the first four months of the fiscal year, showcasing one of the stakes for the administration as the Supreme Court weighs whether President Trump had the authority to impose most of his duties.

Luxury travel is surging, bookings up 40%

For those who can afford it in the “K-Shaped Economy,” Luxury travel is surging, with 2026 bookings up 30–40%. The 2026 Forbes Travel Guide star ratings (their biggest list ever) offer a clear picture of this flourishing high-end market, worth around $180 billion. According to Amanda Fraser at Forbes "the guest [is] really winning today" with "more places to choose from and more integrity in a system."

Demand is growing "everywhere," and a significant trend is the rise of luxury cruising. Fraser explains how luxury cruising is "feeding the demand for slow travel and for authentic travel as well, and really delivering that sense of place." This year even saw the world's first five-star cruise line, the Ilma, with the Ritz-Carlton Yacht Collection. River cruising is also surging, driven by "the attention to detail that those types of experiences can offer."

The growth is fueled by a "great wealth transfer" and the rise of "multi-generational travel," according to Fraser. In the hotel sector, she notes a trend toward "the more hotel within a hotel," focusing on smaller, club-like properties. For younger, luxury travelers, the key is a "strong brand identity" and ensuring "service level...is consistent." Finally, brands must pay attention to their "wellness commitment as well and wellbeing," which Fraser calls "another industry that we’re seeing terrific numbers out of."

Just be careful not to put it all on your credit card, folks.

Should you check your 401(k) today?

👎️ 

Bit of a blood bath on the markets yesterday, if I’m honest. Probably best to wait a bit.

Poll of the day: It’s World-Famous-5-7-5™ time

Poll results: You remembered!

We asked: Did you forget Valentine's Day?

You answered:

🟨⬜️⬜️⬜️⬜️⬜️ Ah. Thanks for the reminder. Nice save. (58)
🟩🟩🟩🟩🟩🟩 No. I remembered, and I've got flowers and a card and chocolates. Thank you. (180)
🟨🟨⬜️⬜️⬜️⬜️ No, but I'm not getting anybody anything because I hate love. (79)
🟨⬜️⬜️⬜️⬜️⬜️ I've got a crush on you, Matt. Expect something nice in the mail... (60)

377 Votes via @beehiiv polls

(*Let’s just take a moment to note with gratitude that 60 people have a crush on me. 😚)

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