Bankruptcies rising. Fed answer? More debt.

[pknopp]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

 

[Mac1958]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Both consumer debt and corporate debt are at troubling levels.

Such is the economic cycle, but that's why many are expecting a slowdown in early to mid 2020.
.

 

[Andylusion]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

I think the real answer is to teach people to not borrow money. Why do you keep looking to government to solve these problems?

If a person borrows money until they are bankrupt, there is nothing the Fed can do to change that. That person needs to stop spending more money than they make. That is the only solution.

 

[Confounding]

I think the real answer is to teach people to not borrow money.

How do ordinary people go to college or buy a decent car/house before they're old without taking loans from the bank?

 

[pknopp]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

I think the real answer is to teach people to not borrow money. Why do you keep looking to government to solve these problems?

Me?

If a person borrows money until they are bankrupt, there is nothing the Fed can do to change that. That person needs to stop spending more money than they make. That is the only solution.

The Fed is arguing to make it easier for them to do that.

 

[keepitreal]

I think the real answer is to teach people to not borrow money.

How do ordinary people go to college or buy a decent car/house before they're old without taking loans from the bank?

Duh...they don’t

 

[Toddsterpatriot]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Both consumer debt and corporate debt are at troubling levels.

Such is the economic cycle, but that's why many are expecting a slowdown in early to mid 2020.
.

Both consumer debt and corporate debt are at troubling levels.

Household Debt Service Payments as a Percent of Disposable Personal Income | FRED | St. Louis Fed

But rates are so low.

 

[pknopp]

To note, the article notes that people are filing for bankruptcy not because they don't have enough disposable income, they are arguing it's because they can't pay for basics from their income, period.

 

[Thinker101]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Easy fix, don't spend more than you make.

 

[pknopp]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

 

[Thinker101]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

 

[Mac1958]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Both consumer debt and corporate debt are at troubling levels.

Such is the economic cycle, but that's why many are expecting a slowdown in early to mid 2020.
.

Both consumer debt and corporate debt are at troubling levels.

View attachment 274039

Household Debt Service Payments as a Percent of Disposable Personal Income | FRED | St. Louis Fed

But rates are so low.

Hey, fun with charts.

 

[pknopp]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Easy fix, don't spend more than you make.

So let's raise interest rates. How about it? Easy money makes for easy debt.

Sure, give you libs something else to piss and moan about.

I've argued this for a long time. Years matter of factly.

 

[Mac1958]

Corporate debt could be the next sub-prime crisis, warns banking body

 

[pknopp]

Corporate debt could be the next sub-prime crisis, warns banking body

He said the demands of investors for higher returns had pushed finance companies increasingly to lend money to firms with poor credit scores.

But it's the fault of people wanting to go to college I suppose. The Fed seems to want to make the requirements even more lax.

 

[Mac1958]

Corporate debt could be the next sub-prime crisis, warns banking body

He said the demands of investors for higher returns had pushed finance companies increasingly to lend money to firms with poor credit scores.

But it's the fault of people wanting to go to college I suppose.

Yeah, I'm sure some would try that one.

Shadow banks have been pushing business loans like crazy, and at some point they have to go bottom-feeding to loan the money.
.

 

[Toddsterpatriot]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Meanwhile, record American household debt, near $14 trillion including mortgages and student loans, is some $1 trillion higher than during the Great Recession of 2008. Credit card debt of $1 trillion also exceeds the 2008 peak.

Real GDP is 20% higher than it was before the start of the recession.

 

[SAYIT]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.
https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Neither article stipulates the kind of bankruptcies (reorg, liguidation) nor the dollar amount in comparison to last year or other pre-recession years like 2006 & 2007.

​

I think the real answer is to teach people to not borrow money. Why do you keep looking to government to solve these problems? If a person borrows money until they are bankrupt, there is nothing the Fed can do to change that. That person needs to stop spending more money than they make. That is the only solution.

Most Americans live on the margin and the same can be said for any gov't, biz, or organization. Chronic deficit spending, particularly in times of prosperity, leaves little or no wiggle room when the crap hits the fan. You can't teach people not to borrow … only the discipline to do so within their ability to repay.

How do ordinary people go to college or buy a decent car/house before they're old without taking loans from the bank?

Exactly. Americans generally function successfully on credit and most never file for bankruptcy. We create a lot of jobs and real wealth on borrowed money.

After her years at NYU my oldest daughter stayed for another 2 years. She worked (and had fun) while Daddy paid her rent. She then moved to San Fran where she continued to work (and have fun) while Daddy paid her rent.

 

[pknopp]

Corporate debt could be the next sub-prime crisis, warns banking body

He said the demands of investors for higher returns had pushed finance companies increasingly to lend money to firms with poor credit scores.

But it's the fault of people wanting to go to college I suppose.

Yeah, I'm sure some would try that one.

Shadow banks have been pushing business loans like crazy, and at some point they have to go bottom-feeding to loan the money.
.

The markets have to go up. Artificially, sanely, or obvious problem or not.

 

[pknopp]

So the news out today is that bankruptcies are on the rise. Debt is getting out of control once again.

https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/

Then we read that the Fed is considering that the solution to debt getting out of control is loosening banks ability to create more debt.

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

Fed Considers New Tool for a Downturn

Meanwhile, record American household debt, near $14 trillion including mortgages and student loans, is some $1 trillion higher than during the Great Recession of 2008. Credit card debt of $1 trillion also exceeds the 2008 peak.

Real GDP is 20% higher than it was before the start of the recession.

"Real" GDP is not. GDP counts the money the government creates out of nothing and is not "real". We are still overloaded with that.