Let's talk about the expanding debt bubble. Federal, corporate, student, home, and credit card loans are all at all-time highs in an economic period where debt should be curtailed. Your thoughts on the following:
>What will kick off the credit crisis? >Will this incoming crisis rival that of '08? >What securities/investments would be useful in navigating the crisis?
Also, neat factoid: if the US continues to expand its economy into July of 2019, it will have achieved the longest period of economic growth in the country's history.
>What will kick off the credit crisis? Student debt and healthcare expenses. Student debt has risen exponentially since 2010 (pic related), and healthcare costs in the US are the highest of any first world (and will only get higher with a Republican congress). Soon, we will reach a tipping point where consumer spending begins to decline, thus impacting corporations, which will finally buckle under the weight of their massive debt. Once stocks tumble, pensions will follow, and they'll all beg the federal government for help. Because the US never learns from its mistakes, the gov't will of course bail out pension funds and further worsen the deficit (compounding by the 2017 tax bill), thus hurting treasuries. Corporate bonds and treasuries will both be cancer, stocks will shit the bed, and conventional institutional investors will be fucked from literally every angle.
>Will this incoming crisis rival that of '08? Yes, purely because this event will, in one felt swoop, bankrupt several US companies and leave many with a "junk" credit rating. This worst of this crisis will not be limited to insurance companies and banks as it was in '08.
>What securities/investments would be useful in navigating the crisis? CDSs, obviously. Crypto most likely, as even just the weakening of the dollar will have a net positive impact on conversion rates. Recession-proof and foreign stocks could help weather the storm. ILSs tied to natural disasters would add even greater diversity.
Nathan Roberts
>institutions take us to 100k eoy, and then economic crisis in 2020 will take us to 1 million.
>Student debt and healthcare expenses. Student debt has risen exponentially since 2010 (pic related), and healthcare costs in the US are the highest of any first world (and will only get higher with a Republican congress). Soon, we will reach a tipping point where consumer spending begins to decline, thus impacting corporations, true, add in the rise in rents over the past 5 years vs wage growth in most areas (some areas are totally crazy in the US in how much rent has risen over this time) and rising interest rates for anyone with adustable rate mortgages or new buyers making payments higher at the current prices when rates rise
Bentley Garcia
That chart is the total supply of circulating dollars. The massive spike since 2008 is the result of quantitative easing. In other words, they printed more money.
When the government inevitably bails out pension funds and the economy sees money flow out of both stocks and bonds, the Fed will likely once again fire up the presses.
Jonathan Foster
checked, I meant your chart though, what is it showing? the title is confusingly vague
Aiden Nguyen
I'm with you, what the fuck is this chart showing? The title is word salad.
Ayden Reed
This is what most people don't understand. When retards like McAffee predict btc at $1MM, what they mean is that the USD is hyperinflated, not that 1 BTC will buy you a fucking mansion.
