The US cannot avoid a soft default even if a hard default is avoided: Debt ceiling already breached and US Treasury operating in emergency mode while US is paying $415 billion in annual interest expenses.
All the talk has shifted from the government shutdown to the US actually defaulting on outstanding debts. The markets were in deep fear but the last couple of days rumors that the debt ceiling would be raised put the rocket boosters on the stock market. Of course, the majority of Americans have little money in […]
Nothing left to financially lose: Biggest drop in confidence since Lehman Brothers and why some are unmoved by government shutdown.
The government isn’t the only thing that shutdown. Economic confidence in the US has also apparently shutdown as well. Many people, in particular those in the media, seem perplexed as to why and how this can happen. Unfortunately the current financial system has disenfranchised a large number of Americans. Enough to the point that politics […]
The grand financial shift: Rich own assets while poor and working class deep in debt. 70 percent of wealth for the bottom 80 percent locked up in principal residence.
A core reason for the financial crisis was because too much debt was given to those with very little ability to pay it back. From the wealthiest banks to those scrimping by on minimum wage. The irony of this is that many for-profit colleges for example use government aid to finance the education of those […]
The Rise of a Semi-employed America: Amazon to hire 70,000 part-time workers while Merck will fire 8,500 full-time employees. Before recession 4 million part-time workers today over 8 million.
The US is seeing a dramatic rise in the number of part-time workers. The reason many employers are going with part-time hiring is that they usually forgo any benefit payments but also have more flexibility in firing these workers when they no longer need them. This may also explain the rise in renting households as […]
United States sets another food stamp record: Households on food stamps at new peak and more Americans live in poverty compared to the entire population of Spain.
The gap between rich and poor in the United States continues to grow in-line with food stamp usage. Many Americans watch in dismay as they view countries like Spain rip its self apart by a massively discontent and unemployed youth movement. Many probably watch thinking that somehow, our problems can never come close to what […]
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 […]