The day of reckoning for student debt has arrived and the bubble begins to deflate: JP Morgan exits the student debt market. Similar trends occurred with the subprime market in 2007.
The student debt bubble begins its inevitable decline from unparalleled heights. This week too big to fail bank JP Morgan issued a memorandum that it is exiting the student loan business. What is interesting in this move is that it is eerily similar to banking moves made back in 2007 as some banks started to […]
To taper, or not to taper. Not the question if you are the Fed: Austerity intact while Fed balance sheet continues to expand.
The Federal Reserve has hinted at slowing down its Quantitative Easing machinery but that might face some challenges as the stock market experienced one of its worst months in over a year. This is not to say that the Fed should respond to the stock market when it sneezes but it makes it more unlikely […]
Why are so many young Americans living at home? Record number of Americans living at home while student debt reaches another record.
While the unemployment rate continues to fall in large part because people are dropping out of the workforce, we reach another record which highlights a difficult economy for young people. A record number of young Americans now live at home. It would be one thing if this was being driven by a desire to stay […]
Long live the reemergence of the FIRE economy: Over the last decade GDP is up $5.2 trillion while the total credit market debt owed is up $24.5 trillion.
The current economy is juiced on the rivers of easy debt. An addiction that is only getting worse. Want to go to college? You’ll very likely go into deep student debt given the rise in college tuition. Want a home? Prices are soaring because of speculation but you’ll need a bigger mortgage to buy. Want […]
Wealth distribution in US rivals a modern day Gilded Age: In 2013 wealth inequality at record levels. 72 percent of wealth in US held by 5 percent of the population.
Americans continue to live through a modern day Gilded Age. Wealth inequality is at its highest levels since the Great Depression, when names like Mellon and Morgan plastered the headlines. Yet this time around, the availability of debt provides the illusion that the playing field is even. Americans are massively in debt and when we […]
The epic crisis in retirement savings: Vast majority of Americans unprepared for retirement. Median retirement savings for those 25 to 34? Zero dollars.
If actions are a method of gauging interests Americans have little desire or ability to prepare for retirement. In fact, the amount of money saved for retirement is absolutely shocking on the low side. When you mention that the American per capita wage is $26,000 people seem shocked. This figure doesn’t coincide with the spend […]
Let us count the ways of inflation: While the CPI understates inflation Americans are living out the days of a contracting standard of living.
Americans are experiencing the impacts of inflationary pressures on their pocketbooks. The Consumer Price Index (CPI) used by the Bureau of Labor and Statistics does a poor job of measuring inflation because it uses derivative measures to reflect the price of things we can readily get. The most obvious example is the measure used to […]