The United States of Debt Addiction: Our reliance on debt has created an entire economy fortified in the fires of moral hazard and fiscally dangerous leverage.
16 point 7 trillion dollars. That is our current national debt. 12 point 8 trillion dollars. That is the amount households carry in mortgage and consumer debt. We are now addicted to debt to lubricate the wheels of our financial system. There is nothing wrong with debt per se, but it is safe to say […]
Income Based Repayment plan cementing inflated higher education costs for graduate school: How new IBR Pay as you Earn plan will be a big win for graduate students and keep college costs high. Student debt to hit $1.8 trillion in 2020.
It is interesting that the two segments in our economy mired in debt, housing and higher education, were largely inflated courtesy of easy access to debt. New rules on how students pay back their student debt including the Income Based Repayment plan ironically will keep prices inflated. The new program dubbed “Pay as you Earn†[…]
Is the stock market a sham for the middle class? Retail investors expected to pull out $475 billion in funds. Volatility index under pricing real risks.
The stock market is largely a source of entertainment or awe for most Americans instead of being a true source of wealth. In the United States roughly 42 percent of all financial wealth is aggregated with one percent of the population. One third of Americans have no savings at all so for this group, the […]
Federal Reserve bubble escape clause: The master of bubble creation talks about preventing future bubbles and other circular banking logic. Fed aggressively buying securities outright.
It is no secret that the Federal Reserve is aggressively buying up a variety of securities and storing them in their opaque balance sheet. The Fed in essence has become the bad bank and has served as the conduit to support bad banking policy. There seems to be a policy of slowly shrinking the middle […]