Has the US lost control on debt market growth? Unbridled debt expansion at the nucleus of rising debt inequality in the United States. US total credit market debt now over 3 times larger than annual GDP.
There is one charge that can never be leveled against Americans and that would be that we somehow have an aversion to debt. To the contrary, our love with debt has blossomed into a full blow addiction. People confuse access to debt with actual real wealth. However as the foreclosure crisis has taught millions, you […]
The Fed has built a financial pyramid based on unsustainable low rates. How the Fed is running out of economic curtains to hide behind when it comes to monetary policy.
The markets are pulling back dramatically because the Fed sneezed. The Fed essentially said they would begin tapering off their experiments in quantitative easing by pulling back their bond purchases from $85 billion a month to $65 billion. That is it. Not a shocking revelation. So why then are the markets plunging on this news? […]
Rationalizing and pushing the debt limit: The academic battle to open the gates on unlimited digital debt monetization.
One of the recent cases for the never ending expansion of debt purchases via central banks is the case of the Bank of Japan. The BoJ has essentially gone into hyper-drive with their version of quantitative easing by going straight into the Nikkei. The case seemed simple: the European Union mired in austerity measures has […]
Americans are slowly creeping back to their non-saving and debt based spending ways: Drop in the savings rate and shift in type of debts being taken.
The personal saving rate in the United States is on a multi-decade decline. Part of this has to do with Americans putting their money into alternative savings vehicles like 401ks and IRAs but a large part of this has to do with Americans simply not saving. Roughly one-third of US households have no savings to […]