Driving our way into poverty: Subprime auto debt continues to expand while domestic auto production remains weak.
Americans love their cars. Urban sprawl with poorly designed city centers has made driving a near necessity for most people. During the credit crisis, one of the problems that occurred was that too many loans were being made to people that had no ability of paying their debt back. We see this trend in full […]
When does college become too expensive? Tuition growth continues to outpace income growth and the student debt bubble continues to expand with the vast majority of debt going to the young.
When does college become too expensive? Will there be a bell going off like during a boxing match? What is the price tag that makes getting an education too expensive? It is obvious in the current economy that many prospective students cannot afford a college education without going into joint breaking levels of debt. Many […]
We are absolutely in a stock market bubble: corporate equity valuations now higher than peak reached in 2007. Crestmont P/E of 26.3 is 90 percent above its average of 13.9.
Once again the stock market is in full bubble mode. The internet chat forums are full of people pumping up stocks and you also have penny stocks surging in light of people looking for the next free lunch. The stock market is a poor indicator of the overall economy but it does show how those […]
The loud noise of inflation: Fed underplays current rise in inflation as noise while Americans see higher home prices, tuition, food costs, and energy prices.
It was interesting to hear the Federal Reserve mention that the higher than expected inflation numbers are merely noise. It is highly unlikely that most Americans feel the current rise in prices as noise. Inflation has a way of eating into every penny that you have especially when the market is flooded with debt. Just […]