China lost the equivalent of 14 Greeces over the last month: Why the actions of banning short selling and punishing the market taken by the Chinese government will backfire.
The market has been fixated on the actions of Greece, a country with 11 million people or the equivalent of Los Angeles County. However, the bigger action is taking place in the gambling obsessed Chinese economy. For those of you not following global news the Chinese stock markets, primarily the Shanghai Composite, Shenzhen, and Hang […]
Record number of too big to fail banks: 59 banks in the United States now have over $20 billion in assets. Top 3 US banks hold $6.3 trillion in assets.
Remember when too big to fail was being uttered like “good morning” or some other daily phrase? Apparently people have forgotten about the dangers of too big to fail and have allowed the banking system to grow like weeds in an unattended garden. The previous peak of massive big banks was in 2004 when we […]
There is an economic crisis happening in the housing market. The working class is finding more of their wages sucked into the housing financial puzzle. Stagnant wages combined with rising home prices and rents are putting a lid on household formation. It probably doesn’t help that many young families are caught in the low wage […]
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 […]