US Corporate Debt Could Cause Next Crisis

[Economy 52,835]

https://www.bnnbloomberg.ca/rosenberg-corporate-credit-will-trigger-another-financial-crisis-within-four-years-1.1362340

 

Economist Rosenberg is worried that US Corporate Debt which has hit 50% of GDP is the "kinkiest bond market of all time" and that so much private sector debt could seriously cause another crisis

 

While he thinks that's the biggest risk other bubbles and imbalances like high Student Debt causing delayed household formation and general consumer debt that is starting to rise again along with with unsustainable Government deficits are also a serious worry

[ItsTommyBitch 12,640]

oh no  

[Economy 52,835]

6 minutes ago, ItsTommyBitch said:

oh no  

The amount of things that are wrong with the economy and policy. I don't see anything getting better anytime soon

[ItsTommyBitch 12,640]

7 minutes ago, Economy said:

The amount of things that are wrong with the economy and policy. I don't see anything getting better anytime soon

I think its concerning that if this were to lead to a major economic crisis, the people responsible would probably just do it again and nothing would change, so I agree. Things aren't getting better soon  

[Economy 52,835]

2 minutes ago, ItsTommyBitch said:

I think its concerning that if this were to lead to a major economic crisis, the people responsible would probably just do it again and nothing would change, so I agree. Things aren't getting better soon  

Honestly one of the factors that I think is causing longer term economic harm (monetary policy) the Central Bank does it EVERY TIME

 

Everytime the economy goes down south they lower rates to encourage borrowing both from consumers and companies and stimulate economy but that debt holds down the economy and the next time there's a recession they have to lower rates more than the last time to have effect and never fully raise it back to what it was before

 

Rates were in the double digits in the 1970s... High single digits by 80s... Down to 4% to 6% by the 2000s and almost 0% after 2008 crisis... Some Nations have it in the negative rates now

 

Like stop using that trick the Central Bankers should know by now the short term boost never works long term

 

That among issues like capital being taxed lower than labor (income tax) which essentially gives the extremely wealthy that make money off investments a lower tax rate than everyone else making income inequality worse

 

Ageing population is a strain too (and I know how unpopular the idea of raising retirement age to match higher life expectancies is so I don't expect that one to change significantly)

 

Monopolies and lobbiest special interest groups that have formed over time from companies getting too big both stiffle competition while creating chrony capitalism because they convince government to make complicated beaureocracy that ends up benefiting them rather than everyone else (like big pharma)

 

And then there's everyday citizens (yes that's right, I think average Joe's create problems too not just the powerful).... whether it's making demands from the government without always being fully informed (and convincing them to make bad decisions because they want votes)... Or everyday actions For example, nowadays wasting time at work with stuff like your phone (I see it all the time) hurts productivity. That's not a positive thing for economic output

 

Climate change is also already having an impact on stuff like the cost of food which affects ppl with lower incomes the most since they spend the highest portion of their income on it

 

Society is just problems and problems... I'm not optimistic about the economic future...