A bear market is defined by a 20 percent drop in the stock market from recent highs. For some, the memory of the last crisis is now but a distant echo. After all, we’ve been in a rather strong bull run for 6 years. But bear markets happen more than most people think. Since 1940 […]
The young, broke, and indebted American: 45 percent of 25 year olds carry student debt and the median net worth of those 35 and younger is one month of expenses.
It is clear looking at economic data that young Americans were not sent the memo regarding this economic recovery. People do realize that the “Great Recession” officially ended in the summer of 2009, right? We’re heading into year six of this recovery but many are simply seeing lower paying jobs, a deeper reliance on debt, […]
Subprime lending at highest level since financial crisis hit: The three leading subprime categories are auto loans, credit cards, and student debt. $189 billion in subprime loans made in 2014.
The euphoria is bleeding into every corner of our debt driven economy. Access to credit is being given to consumers but unfortunately, the loans are tied to items that are counter to becoming financially healthy. More to the point, subprime loans have reached levels that were last seen only during the financial crisis. As fewer […]
The revival of the American debt machine: auto loans, student debt, and credit card debt surge in latest report. Total non-housing debt now at $3.15 trillion.
Last week while going through mountains of credit cards offers, it felt as if we were in 2005 and 2006. Even last year, the cold calls started and it seemed like the debt machine was back and alive. This is helpful news for consumers given that half of Americans are living paycheck to paycheck. Now […]
Market indicators suggesting a correction is coming: On Black Tuesday Shiller PE Ratio was at 30. Today it is at 26.2 and volatility is back in a big way.
Volatility is back in a big way for the global economy. Not that it went away but for a couple of years central banks fooled the public into believing that perpetual debt was a good way to rejuvenate the markets. There will be no free lunch. Oil crashed rather dramatically. Greece is reigniting further issues […]
The American Dream no longer involves owning a home: Record number of young living at home and rents increase while income falls.
Inflation is an insidious money grabber. When incomes are stagnant or falling, any tiny amount of inflation is tantamount to a wage a cut. The largest expense for Americans is housing payments. This can be in the form of rent paid to a landlord or mortgages paid to a bank. Either way, money is getting […]
A leveraged system – US debt jumps $100 billion on last day of year. Total US debt markets at $58 trillion.
The New Year came and went and here we are fully into 2015. Most Americans didn’t realize this but on the last day of the year US debt jumped by $100 billion in one day driven largely by Social Security adjustments. The current economy is dangerously addicted to debt. There was a time not too […]