Friday, September 02, 2016

The Four Horses Of 
The U.S. Debt Apocalypse
NOMI PRINS essay explains how excessive debt in the U.S. has the potential to create an implosion of the U.S. financial system .. "1. The student loan debt bomb is exploding, with few remedies to address it. Student loans aren’t dischargeable in bankruptcy, meaning there’s no way to get rid of them for a clean, Donald Trumpesque slate. The financial industry lobbied to make sure of this when the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was passed .. Current numbers are epic. Americans owe about $1.3 trillion in student loan debt across 43 million borrowers. This a HUGE increase from $260 billion in 2004 .. 2. Subprime Auto Loans — You may have heard about the record amount of auto sales recently — over $1 trillion .. the rate of delinquent subprime car loans soared above 5% in February — the highest level in 20 years .. 3. Credit Cards .. U.S. credit card debt will surpass $1 trillion this year, just shy of its the financial crisis peak .. 4. 99% of Corporates’ Cash/Debt Ratios Are Poor — If liquidity problems just plagued consumers, it’d be one thing. That’s not the case. The top 25 U.S. nonfinancial companies, or top 1%, control 51% of the total cash held by all nonfinancial U.S. corporations, according to S&P Global Ratings. That’s up from 38% five years ago. Meanwhile, the bottom 99% of these companies are adding debt .. These four horses of debt, galloping toward us simultaneously from different sectors, don’t show any sign of slowing .. They will trigger the U.S. Debt Apocalypse, bringing more defaults, vast job cuts and economic fallout than even the Great Recession."
LINK HERE to the essay

1 comment:

Anonymous said...

What comes after the four horses ? .... go read.