Clown-Free Zone... sorry, no clowns allowed Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mark Adams who wrote (107826)	6/11/2001 10:20:56 AM
From: pater tenebrarum	Read Replies (3) of 436258

Mark, the point again is that the growth in the GSEs balance sheets has begun to divorce itself from the underlying economic growth rate, to an incredible extent. so far this year their balance sheets are growing at 20% annualized. FMNs leverage is now a cool 155:1 - it's an accident (read: tax payer bail-out) waiting to happen. i agree that stock buybacks on credit have also contributed to the growth in corporate debt, but they are just one factor among many. it's however an example of an especially dangerous use of debt. regarding consumers, we see that mortgage and revolving credit defaults, as well as individual bankruptcy filings are on a steep upward trajectory so far this year. many people are living from paycheck to paycheck...and month after month the rise in consumer spending outpaces the growth in incomes. the big increase in bankruptcy filings has coincided with the recent increase in lay-offs, so apparently there ARE lots of people a mere week away from bankruptcy. the following charts demonstrate the link between increasing consumer debt and the increase in bankruptcies: law.missouri.edu

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next