Posted on 05/22/2019 6:58:24 AM PDT by Pining_4_TX
Artificially low interest rates and monetary manipulation of the kind that the developed world, and more specifically the United States, have witnessed since the last financial crisis have consequences. One of them has been the ballooning of corporate debt in this country.
Regardless of how corporate America has used its access to tons of cheap new credit all these years (many companies, as is well known, have simply used it to buy back their own shares, whether it made sense or not, just to make their earnings per share look better), the result today is a highly dangerous level of debt at the heart of the economy.
Corporate debt was not one of the big culprits of the financial crisis a decade ago. But it might well be next time around. It has now reached $10 trillion, which means it is 60 percent higher than it was a decade ago. Its total size amounts to about half of the total size of the U.S. economy.
(Excerpt) Read more at blog.independent.org ...
Corporate debt? How about GOVERNMENT debt?
Yep! Are we having fun yet? I just hope that nothing happens to put Democrats back in charge of everything. Then we are really doomed.
I imagine the Dems will want to raise corporate taxes as a way of dealing with this new crisis ...
How about we are personal debt, mortgage debt and student loan debt to the equation?
Financial disasters are caused by the Federal Reserve falsely claiming that economic growth causes inflation.
Governments can print money to make debt go away. Corporations can’t do that.
Corruption and intentional crashing of the economy by dems in government and shorting of stocks right before the election by a cabal of billionaires foreign and domestic will sink american prosperity just in time for 2020
Boy are they hyping crisis and recession right now.
Wait... You mean to tell me there could be consequences for all that money that Obama printed up?
I’m shocked...
Personal debt is $19.7 trillion, not far from our national debt of $22.3 trillion.
Total mortgage debt is $14.6 (79% of personal debt).
Forty years ago Pat Robertson went on The 700 Club and floated the idea of a Year of Jubilee.
That idea is looking less and less crazy all the time.
Government caused the last one. More than likely it will cause the next.
Debt as a measure of fiscal health is totally and completely meaningless when not accompanied by a statement of assets including in this case all revenue streams.
If Had personal debt of 1 million dollars, many would surmise I was in big trouble. But if it we’re reported I had assets of 3 million and an income of 1 million annually it would be seen in an entirely different light.
It’s all about context.
After they are done paying $25/day for grub hub to send them McDonalds for lunch they have no "discretionary" income. OH, and ordering $8/glass craft beers they can't afford.
True. And it depends on why the debt is there.
For me personally, a number of years ago, I had a huge mortgage debt. But the debt was related to the asset, my house. Today, the mortgage balance has been paid way down, while the asset has skyrocketed in value.
So then, if companies have construction or mortgage debt, due to expanding operations, and have income to pay back such loans, that debt is not exactly a crisis.
Grub Hub, LOL. Yes, some people don’t exactly manage their money as effectively as they could.
“Corporate debt? How about GOVERNMENT debt?”
EXACTLY! CONgre$$ should all be in prison...LOOTING the REPUBLIC...
...prison...or worse.
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