Standard of living, meet falling US dollar – how a falling US dollar benefits banks at the expense of working Americans.
There is certainly a cost to a falling US dollar. Many Americans are living the consequences of this multi-decade long trend. The Federal Reserve has only added fuel to this trend but many families are now realizing that there does come a cost to unrelenting debt based solutions to fiscal problems. Shopping at the local […]
The sound of rumbling from the student debt bubble – Jump in consumer credit last month came mostly from student debt growth. For two decades student debt expanded at a rate above 17 percent per year.
The flashing alert signs permeating from the higher education bubble should give people pause to the next flavor of the day bubble. This month information was released regarding consumer credit growth. Most of the headlines took this as positive economic news but digging deeper into the data we realize that the bulk of the growth […]
How the Fed bluffs the financial system – Labor force participation back to levels last seen over three decades ago. Fed policy aims at pushing US dollar lower.
The US is facing a long trend of aging Americans entering into retirement or what can be viewed as life post-work. The vision of sitting on the sand in some resort villa is largely a dream. Nearly half of American when they leave this world go out broke like a country western song. Today as […]
Deleveraging from one bubble to another – $6.2 trillion in mortgage debt was added between 2000 and 2008. Since the peak in 2008 $1.3 trillion in US household debt is gone but another bubble is brewing hidden under the rubble of the busted housing market.
There is some interesting data on the deleveraging that is occurring with the American household. Since the peak in Q3 of 2008, US households have lowered their outstanding debt by $1.3 trillion. It is important to understand how this deleveraging is occurring. First of all, Americans are largely paying down existing debts much faster and […]