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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (110430)	2/5/2015 5:45:54 AM
From: Elroy Jetson	1 Recommendation Recommended By KyrosL Respond to of 219379

The Total Credit Market Debt to GDP ratio has declined in the United States from 3.66 at the peak of the real estate bubble in 2006 to 3.39 today as excess mortgages were liquidated. The Private Sector Debt to GDP ratio has declined from 3.06 to 2.29 as the U.S. government bailed-out banks, businesses and consumers. The bail-outs have increased the Government Debt to GDP ratio from 0.6 to 1.0 since 2007. This reduction in Private Sector Debt to GDP through debt liquidation and bail-outs, doing the work of the economic depression, is the reason why the U.S. currently has the strongest economy. Live Chart -- macrotrends.net In contrast, the Debt to GDP ratio has increased for all sectors of the Chinese economy, with non-financial corporate debt dangerously high - which will likely shift back to the financial and government sector in the future as businesses default. WSJ

To: elmatador who wrote (110430)	2/5/2015 7:56:16 AM
From: ggersh	Respond to of 219379

Seven years in and nothing has changed, CB's work magic don't they? -nfg-

To: elmatador who wrote (110430)	2/5/2015 12:56:27 PM
From: teevee	Read Replies (1) \| Respond to of 219379

Debt mountains spark fears of another crisis Now, at the slightest whiff of an economic slow down or deflation, either money is printed or borrowed. All gov's now addicted to cheap money and low interest rates. This cannot end well. When the next black swan arrives (impossible to predict), I believe it will be much much worse than 2008/09 as the resultant international banking system and rules is so far unchallenged and it is unknown how it will respond. For example, imagine if $3 trillion in pension and mutual fund investments all tried to "get through the door" and sell at the same time, and the knock on effects to the banking system? I fear all savers, companies with leveraged balance sheets, and consumers with debts will be wiped out. Only companies with "fat" on the balance sheets, and paid for hard assets will survive, although liquidity initially will be poor and prices low. Everything else will be no bid, no offers or zero.......