Sunday, July 17, 2016

Dr. Lacy Hunt: Yes, 
The Economy Is Actually That Bad
Article highlights the recent thoughts by Dr. Hunt .. on debt - U.S. consumers have racked up almost $1 trillion in credit card debt, despite some saying this is a great sign, that this means consumers are optimistic & will buoy the economy, Dr. Hunt does not agree .. "He immediately points out that debt is a two-edged sword and that if additional indebtedness doesn’t work to create income to pay down interest and principle, it is a no-win deal. See, when you agree to spend borrowed money today, you’re leveraging that against your future income. That means that the dollars you’ll earn tomorrow are already spent and will not be there to use in the future for anything else. Seems obvious, right? Of course, this is not a problem if you expect your income to increase as time marches along and your payments become due. But how many people in America are facing an increase in personal income when the standard of living hasn’t changed one iota in 20 years? Not many."
LINK HERE to the article

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