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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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To: DinoNavarre who wrote (5660)6/3/2020 3:06:33 AM
From: elmatador   of 13796
 
What we are witnessing, right now, is all part of the unwinding of the Financial Collapse.

We need to look back to 2008. The US, Europe and Japan decided to avoid the pain of liquidating everything and clean up the mess. That would mean a level of pain of the Great Depression of 1929.

The mess would have been a bank run in Europe and the US and the mess that would have ensued (companies bankruptcies and nationalizations across Europe) and that struck fear that the dollar would lose its status as a world reserve currency or would have its status severely curtailed.

In that scenario, the developments that would to resolve the issues would have included accommodating China, and with that, China's Yuan would have grabbed power vis a vis the Euro and the dollar. Bernanke stepped in and avoided all that.

Bernanke avoided the liquidation and its effects but created a situation where the problems were papered over and the proverbial can was kicked the can down the road.

Student debt flows from that above situation.

Cut for today and we see -look below- the student debt DID NOT slow down in 2008-2009 like credit card, auto loans and mortgage debt did. These all fell and stabilize. But student debt continued up like the finance crisis of 2008 had not happened.
Look to mortagage debt !
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