The Leverage Problem

[Ambivalent1]

No it will be the Banks and their lending policies, the poor are just collateral damage.

The Banks got to double dip, they got Bush's and Bammy's bailout money AND the houses they foreclosed on.
Pretty good gig eh?

Banksters also went to the Treasury Dept.'s window to get 0(zero)% loans for a long time.
Where does the average person get 0% loans?

If you are talking about ZIRP, that is not the Treasury. That's the Fed discount window.

LOL, son EVERYTHING begins and ends with the Fed. We print bonds, they buy them. ALL of the Gov is complicit in this fraud, not just Trump as you pretend.

I am way, way, way ahead of you: The Fed's Bond Bubble Doomsday Machine


Trump, as President, can either exacerbate or mitigate our leverage problem. He has exacerbated it.

You aren't ahead of anyone. Trump is doing as he is told, they all do.

 

[g5000]

Yes, the crash when it comes, will again somehow be poor people's fault.

No it will be the Banks and their lending policies, the poor are just collateral damage.

The Banks got to double dip, they got Bush's and Bammy's bailout money AND the houses they foreclosed on.
Pretty good gig eh?

Banksters also went to the Treasury Dept.'s window to get 0(zero)% loans for a long time.
Where does the average person get 0% loans?

If you are talking about ZIRP, that is not the Treasury. That's the Fed discount window.

LOL, son EVERYTHING begins and ends with the Fed. We print bonds, they buy them. ALL of the Gov is complicit in this fraud, not just Trump as you pretend.

There would not be a Fed bond bubble if our government wasn't borrowing the money which caused those bonds to be created in the first place.

Since Trump has DOULBED our federal deficit, and spent more money last year than anyone in human history, then he is contributing to the problem.

 

[g5000]

Investors have a new biggest worry about the stock market

For the first time since the financial crisis, corporate leverage is the chief concern for the professional investors who handle Wall Street’s largest funds.

<snip>

Debt has emerged as a bigger concern with corporate bonds outstanding now eclipsing the $9 trillion mark. Investors have gotten more concerned over leverage, or the amount of debt companies hold compared to the value of their equity.

A net 48 percent of the market pros surveyed believe corporate balance sheets are overlevered.

<snip>

This is the first time since 2009, or just after the financial crisis, that investors have listed leverage as their principal concern. Companies spent the years after the crisis raising cash but also running up debt, which had become cheap as the Federal Reserve slashed interest rates in an effort to stimulate the economy.


The cash to debt ratio reached 12 percent in 2017, the lowest it had been since 2008.

<snip>

Pessimism about global growth have intensified, with 60 percent indicating that a slowdown in GDP gains is coming over the next 12 months. That’s the worst outlook since the depths of the crisis in July 2008, just two months before Lehman Brothers collapsed and set off a global financial panic.

However, investors do not believe conditions will get bad enough for a recession, with just 14 percent seeing negative growth. Instead, they see a condition known as “secular stagnation,” which posits that the global economy is in a long-term stasis in which growth will remain below trend.

Read Tragedy and Hope, you'll find that debt is what runs the economy.

Money runs the economy, debt creates money.

The part your cartoons always leave out is that paying back debt destroys money.

They omit that part on purpose.

 

[Ambivalent1]

Investors have a new biggest worry about the stock market

For the first time since the financial crisis, corporate leverage is the chief concern for the professional investors who handle Wall Street’s largest funds.

<snip>

Debt has emerged as a bigger concern with corporate bonds outstanding now eclipsing the $9 trillion mark. Investors have gotten more concerned over leverage, or the amount of debt companies hold compared to the value of their equity.

A net 48 percent of the market pros surveyed believe corporate balance sheets are overlevered.

<snip>

This is the first time since 2009, or just after the financial crisis, that investors have listed leverage as their principal concern. Companies spent the years after the crisis raising cash but also running up debt, which had become cheap as the Federal Reserve slashed interest rates in an effort to stimulate the economy.


The cash to debt ratio reached 12 percent in 2017, the lowest it had been since 2008.

<snip>

Pessimism about global growth have intensified, with 60 percent indicating that a slowdown in GDP gains is coming over the next 12 months. That’s the worst outlook since the depths of the crisis in July 2008, just two months before Lehman Brothers collapsed and set off a global financial panic.

However, investors do not believe conditions will get bad enough for a recession, with just 14 percent seeing negative growth. Instead, they see a condition known as “secular stagnation,” which posits that the global economy is in a long-term stasis in which growth will remain below trend.

Read Tragedy and Hope, you'll find that debt is what runs the economy.

Money runs the economy, debt creates money.

Hence debt runs the economy. Fractional Reserve Banking is why the crash will come.There is more debt than there is money.

 

[Ambivalent1]

No it will be the Banks and their lending policies, the poor are just collateral damage.

The Banks got to double dip, they got Bush's and Bammy's bailout money AND the houses they foreclosed on.
Pretty good gig eh?

Banksters also went to the Treasury Dept.'s window to get 0(zero)% loans for a long time.
Where does the average person get 0% loans?

If you are talking about ZIRP, that is not the Treasury. That's the Fed discount window.

LOL, son EVERYTHING begins and ends with the Fed. We print bonds, they buy them. ALL of the Gov is complicit in this fraud, not just Trump as you pretend.

There would not be a Fed bond bubble if our government wasn't borrowing the money which caused those bonds to be created in the first place.

Since Trump has DOULBED our federal deficit, and spent more money last year than anyone in human history, then he is contributing to the problem.

Of course he is, put your ego aside and admit they are ALL part of the problem. This shit has been on steroids since Willy left office.

 

[g5000]

Investors have a new biggest worry about the stock market

For the first time since the financial crisis, corporate leverage is the chief concern for the professional investors who handle Wall Street’s largest funds.

<snip>

Debt has emerged as a bigger concern with corporate bonds outstanding now eclipsing the $9 trillion mark. Investors have gotten more concerned over leverage, or the amount of debt companies hold compared to the value of their equity.

A net 48 percent of the market pros surveyed believe corporate balance sheets are overlevered.

<snip>

This is the first time since 2009, or just after the financial crisis, that investors have listed leverage as their principal concern. Companies spent the years after the crisis raising cash but also running up debt, which had become cheap as the Federal Reserve slashed interest rates in an effort to stimulate the economy.


The cash to debt ratio reached 12 percent in 2017, the lowest it had been since 2008.

<snip>

Pessimism about global growth have intensified, with 60 percent indicating that a slowdown in GDP gains is coming over the next 12 months. That’s the worst outlook since the depths of the crisis in July 2008, just two months before Lehman Brothers collapsed and set off a global financial panic.

However, investors do not believe conditions will get bad enough for a recession, with just 14 percent seeing negative growth. Instead, they see a condition known as “secular stagnation,” which posits that the global economy is in a long-term stasis in which growth will remain below trend.

Read Tragedy and Hope, you'll find that debt is what runs the economy.

Money runs the economy, debt creates money.

Hence debt runs the economy. Fractional Reserve Banking is why the crash will come.There is more debt than there is money.

Yes, debt is the spending of tomorrow's income today.

Trump's fake tax cut stole $1.5 trillion out of the pockets of the unborn.

 

[Ambivalent1]

Investors have a new biggest worry about the stock market

For the first time since the financial crisis, corporate leverage is the chief concern for the professional investors who handle Wall Street’s largest funds.

<snip>

Debt has emerged as a bigger concern with corporate bonds outstanding now eclipsing the $9 trillion mark. Investors have gotten more concerned over leverage, or the amount of debt companies hold compared to the value of their equity.

A net 48 percent of the market pros surveyed believe corporate balance sheets are overlevered.

<snip>

This is the first time since 2009, or just after the financial crisis, that investors have listed leverage as their principal concern. Companies spent the years after the crisis raising cash but also running up debt, which had become cheap as the Federal Reserve slashed interest rates in an effort to stimulate the economy.


The cash to debt ratio reached 12 percent in 2017, the lowest it had been since 2008.

<snip>

Pessimism about global growth have intensified, with 60 percent indicating that a slowdown in GDP gains is coming over the next 12 months. That’s the worst outlook since the depths of the crisis in July 2008, just two months before Lehman Brothers collapsed and set off a global financial panic.

However, investors do not believe conditions will get bad enough for a recession, with just 14 percent seeing negative growth. Instead, they see a condition known as “secular stagnation,” which posits that the global economy is in a long-term stasis in which growth will remain below trend.

Read Tragedy and Hope, you'll find that debt is what runs the economy.

Money runs the economy, debt creates money.

Hence debt runs the economy. Fractional Reserve Banking is why the crash will come.There is more debt than there is money.

Yes, debt is the spending of tomorrow's income today.

Trump's fake tax cut stole $1.5 trillion out of the pockets of the unborn.

You are a very limited thinker G. Your thinking is stunted by your myopic hatred. Adults grow out of that.

 

[g5000]

The Banks got to double dip, they got Bush's and Bammy's bailout money AND the houses they foreclosed on.
Pretty good gig eh?

Banksters also went to the Treasury Dept.'s window to get 0(zero)% loans for a long time.
Where does the average person get 0% loans?

If you are talking about ZIRP, that is not the Treasury. That's the Fed discount window.

LOL, son EVERYTHING begins and ends with the Fed. We print bonds, they buy them. ALL of the Gov is complicit in this fraud, not just Trump as you pretend.

There would not be a Fed bond bubble if our government wasn't borrowing the money which caused those bonds to be created in the first place.

Since Trump has DOULBED our federal deficit, and spent more money last year than anyone in human history, then he is contributing to the problem.

Of course he is, put your ego aside and admit they are ALL part of the problem. This shit has been on steroids since Willy left office.

Dude, I've been ranting about government debt since coming to this forum. And long before that.

Our politicians are only doing what we demand of them. If they didn't overspend, we would fire them and elect someone who will.

We get the politicians we deserve.

Pseudocons think it's the poor and Mexicans who are causing all this spending, when they really should be looking in the mirror for the culprit.

Tax expenditures are DOUBLE what we spend on welfare.

 

[g5000]

Investors have a new biggest worry about the stock market

For the first time since the financial crisis, corporate leverage is the chief concern for the professional investors who handle Wall Street’s largest funds.

<snip>

Debt has emerged as a bigger concern with corporate bonds outstanding now eclipsing the $9 trillion mark. Investors have gotten more concerned over leverage, or the amount of debt companies hold compared to the value of their equity.

A net 48 percent of the market pros surveyed believe corporate balance sheets are overlevered.

<snip>

This is the first time since 2009, or just after the financial crisis, that investors have listed leverage as their principal concern. Companies spent the years after the crisis raising cash but also running up debt, which had become cheap as the Federal Reserve slashed interest rates in an effort to stimulate the economy.


The cash to debt ratio reached 12 percent in 2017, the lowest it had been since 2008.

<snip>

Pessimism about global growth have intensified, with 60 percent indicating that a slowdown in GDP gains is coming over the next 12 months. That’s the worst outlook since the depths of the crisis in July 2008, just two months before Lehman Brothers collapsed and set off a global financial panic.

However, investors do not believe conditions will get bad enough for a recession, with just 14 percent seeing negative growth. Instead, they see a condition known as “secular stagnation,” which posits that the global economy is in a long-term stasis in which growth will remain below trend.

Read Tragedy and Hope, you'll find that debt is what runs the economy.

Money runs the economy, debt creates money.

Hence debt runs the economy. Fractional Reserve Banking is why the crash will come.There is more debt than there is money.

Yes, debt is the spending of tomorrow's income today.

Trump's fake tax cut stole $1.5 trillion out of the pockets of the unborn.

You are a very limited thinker G. Your thinking is stunted by your myopic hatred. Adults grow out of that.

Horseshit.

I watched the pseudocons wail and moan for eight years about Obama's overspending, and then suddenly go totally radio silent when Trump took office and promptly began doubling the deficit.

So fuck you, asshole.

 

[Ambivalent1]

Banksters also went to the Treasury Dept.'s window to get 0(zero)% loans for a long time.
Where does the average person get 0% loans?

If you are talking about ZIRP, that is not the Treasury. That's the Fed discount window.

LOL, son EVERYTHING begins and ends with the Fed. We print bonds, they buy them. ALL of the Gov is complicit in this fraud, not just Trump as you pretend.

There would not be a Fed bond bubble if our government wasn't borrowing the money which caused those bonds to be created in the first place.

Since Trump has DOULBED our federal deficit, and spent more money last year than anyone in human history, then he is contributing to the problem.

Of course he is, put your ego aside and admit they are ALL part of the problem. This shit has been on steroids since Willy left office.

Dude, I've been ranting about government debt since coming to this forum. And long before that.

Our politicians are only doing what we demand of them. If they didn't overspend, we would fire them and elect someone who will.

We get the politicians we deserve.

Pseudocons think it's the poor and Mexicans who are causing all this spending, when they really should be looking in the mirror for the culprit.

Tax expenditures are DOUBLE what we spend on welfare.

Sorry son, you are fixated on Trump and too myopic to admit all of the Gov is to blame, there is no differences in any of the political class.. They don't give a shit about what "we" want, they do what the Banks tell them to do. Do you think repeating the "pseudocon" makes you look smart? It's no different than franco using the word derp in every sentence.
Grow up.

 

[Ambivalent1]

Read Tragedy and Hope, you'll find that debt is what runs the economy.

Money runs the economy, debt creates money.

Hence debt runs the economy. Fractional Reserve Banking is why the crash will come.There is more debt than there is money.

Yes, debt is the spending of tomorrow's income today.

Trump's fake tax cut stole $1.5 trillion out of the pockets of the unborn.

You are a very limited thinker G. Your thinking is stunted by your myopic hatred. Adults grow out of that.

Horseshit.

I watched the pseudocons wail and moan for eight years about Obama's overspending, and then suddenly go totally radio silent when Trump took office and promptly began doubling the deficit.

So fuck you, asshole.

Oh look G is angry. I've put Trump down for his spending at every turn, grow the fuck up. You aren't nearly as "smart" as you fancy yourself to be.

 

[g5000]

If you are talking about ZIRP, that is not the Treasury. That's the Fed discount window.

LOL, son EVERYTHING begins and ends with the Fed. We print bonds, they buy them. ALL of the Gov is complicit in this fraud, not just Trump as you pretend.

There would not be a Fed bond bubble if our government wasn't borrowing the money which caused those bonds to be created in the first place.

Since Trump has DOULBED our federal deficit, and spent more money last year than anyone in human history, then he is contributing to the problem.

Of course he is, put your ego aside and admit they are ALL part of the problem. This shit has been on steroids since Willy left office.

Dude, I've been ranting about government debt since coming to this forum. And long before that.

Our politicians are only doing what we demand of them. If they didn't overspend, we would fire them and elect someone who will.

We get the politicians we deserve.

Pseudocons think it's the poor and Mexicans who are causing all this spending, when they really should be looking in the mirror for the culprit.

Tax expenditures are DOUBLE what we spend on welfare.

Sorry son, you are fixated on Trump and too myopic to admit all of the Gov is to blame, there is no differences in any of the political class.. They don't give a shit about what "we" want, they do what the Banks tell them to do. Do you think repeating the "pseudocon" makes you look smart? It's no different than franco using the word derp in every sentence.
Grow up.

Irony. Your are projecting your own narrow conspiracy theory thinking onto others.

Next, you'll be telling us its the international Jewish bankers behind all this.

 

[BuckToothMoron]

Banksters also went to the Treasury Dept.'s window to get 0(zero)% loans for a long time.
Where does the average person get 0% loans?

If you are talking about ZIRP, that is not the Treasury. That's the Fed discount window.

LOL, son EVERYTHING begins and ends with the Fed. We print bonds, they buy them. ALL of the Gov is complicit in this fraud, not just Trump as you pretend.

There would not be a Fed bond bubble if our government wasn't borrowing the money which caused those bonds to be created in the first place.

Since Trump has DOULBED our federal deficit, and spent more money last year than anyone in human history, then he is contributing to the problem.

Of course he is, put your ego aside and admit they are ALL part of the problem. This shit has been on steroids since Willy left office.

Dude, I've been ranting about government debt since coming to this forum. And long before that.

Our politicians are only doing what we demand of them. If they didn't overspend, we would fire them and elect someone who will.

We get the politicians we deserve.

Pseudocons think it's the poor and Mexicans who are causing all this spending, when they really should be looking in the mirror for the culprit.

Tax expenditures are DOUBLE what we spend on welfare.

US debt is a funny thing. And when it gets too large compared to the GDP, bad things can happen. Debt isn’t a problem until the issuer losses faith in the debtor’s ability to repay.

 

[g5000]

If you are talking about ZIRP, that is not the Treasury. That's the Fed discount window.

LOL, son EVERYTHING begins and ends with the Fed. We print bonds, they buy them. ALL of the Gov is complicit in this fraud, not just Trump as you pretend.

There would not be a Fed bond bubble if our government wasn't borrowing the money which caused those bonds to be created in the first place.

Since Trump has DOULBED our federal deficit, and spent more money last year than anyone in human history, then he is contributing to the problem.

Of course he is, put your ego aside and admit they are ALL part of the problem. This shit has been on steroids since Willy left office.

Dude, I've been ranting about government debt since coming to this forum. And long before that.

Our politicians are only doing what we demand of them. If they didn't overspend, we would fire them and elect someone who will.

We get the politicians we deserve.

Pseudocons think it's the poor and Mexicans who are causing all this spending, when they really should be looking in the mirror for the culprit.

Tax expenditures are DOUBLE what we spend on welfare.

US debt is a funny thing. And when it gets too large compared to the GDP, bad things can happen. Debt isn’t a problem until the issuer losses faith in the debtor’s ability to repay.

The Minsky moment. Exactly.

 

[occupied]

Yes, the crash when it comes, will again somehow be poor people's fault.

I don’t recall poor people ever getting blamed for a crash. What did I miss?

You apparently missed the excuse that somehow kept the biggest wheels on Wall Street out of jail. All the Republicans and even some Democrats totally bought it that the crash was totally caused by poor people buying houses they could not afford somehow leaving the lenders blameless.

 

[Ambivalent1]

LOL, son EVERYTHING begins and ends with the Fed. We print bonds, they buy them. ALL of the Gov is complicit in this fraud, not just Trump as you pretend.

There would not be a Fed bond bubble if our government wasn't borrowing the money which caused those bonds to be created in the first place.

Since Trump has DOULBED our federal deficit, and spent more money last year than anyone in human history, then he is contributing to the problem.

Of course he is, put your ego aside and admit they are ALL part of the problem. This shit has been on steroids since Willy left office.

Dude, I've been ranting about government debt since coming to this forum. And long before that.

Our politicians are only doing what we demand of them. If they didn't overspend, we would fire them and elect someone who will.

We get the politicians we deserve.

Pseudocons think it's the poor and Mexicans who are causing all this spending, when they really should be looking in the mirror for the culprit.

Tax expenditures are DOUBLE what we spend on welfare.

Sorry son, you are fixated on Trump and too myopic to admit all of the Gov is to blame, there is no differences in any of the political class.. They don't give a shit about what "we" want, they do what the Banks tell them to do. Do you think repeating the "pseudocon" makes you look smart? It's no different than franco using the word derp in every sentence.
Grow up.

Irony. Your are projecting your own narrow conspiracy theory thinking onto others.

Next, you'll be telling us its the international Jewish bankers behind all this.

LOL, your lack of knowledge is not my problem. Your Trump hatred has made into a little child. The Central Bank system and the BIS, learn something and get back to me.

 

[Ambivalent1]

If you are talking about ZIRP, that is not the Treasury. That's the Fed discount window.

LOL, son EVERYTHING begins and ends with the Fed. We print bonds, they buy them. ALL of the Gov is complicit in this fraud, not just Trump as you pretend.

There would not be a Fed bond bubble if our government wasn't borrowing the money which caused those bonds to be created in the first place.

Since Trump has DOULBED our federal deficit, and spent more money last year than anyone in human history, then he is contributing to the problem.

Of course he is, put your ego aside and admit they are ALL part of the problem. This shit has been on steroids since Willy left office.

Dude, I've been ranting about government debt since coming to this forum. And long before that.

Our politicians are only doing what we demand of them. If they didn't overspend, we would fire them and elect someone who will.

We get the politicians we deserve.

Pseudocons think it's the poor and Mexicans who are causing all this spending, when they really should be looking in the mirror for the culprit.

Tax expenditures are DOUBLE what we spend on welfare.

US debt is a funny thing. And when it gets too large compared to the GDP, bad things can happen. Debt isn’t a problem until the issuer losses faith in the debtor’s ability to repay.

Expand that thought from micro to macro.

 

[g5000]

There would not be a Fed bond bubble if our government wasn't borrowing the money which caused those bonds to be created in the first place.

Since Trump has DOULBED our federal deficit, and spent more money last year than anyone in human history, then he is contributing to the problem.

Of course he is, put your ego aside and admit they are ALL part of the problem. This shit has been on steroids since Willy left office.

Dude, I've been ranting about government debt since coming to this forum. And long before that.

Our politicians are only doing what we demand of them. If they didn't overspend, we would fire them and elect someone who will.

We get the politicians we deserve.

Pseudocons think it's the poor and Mexicans who are causing all this spending, when they really should be looking in the mirror for the culprit.

Tax expenditures are DOUBLE what we spend on welfare.

Sorry son, you are fixated on Trump and too myopic to admit all of the Gov is to blame, there is no differences in any of the political class.. They don't give a shit about what "we" want, they do what the Banks tell them to do. Do you think repeating the "pseudocon" makes you look smart? It's no different than franco using the word derp in every sentence.
Grow up.

Irony. Your are projecting your own narrow conspiracy theory thinking onto others.

Next, you'll be telling us its the international Jewish bankers behind all this.

LOL, your lack of knowledge is not my problem. Your Trump hatred has made into a little child. The Central Bank system and the BIS, learn something and get back to me.

I know all about central banking and BIS system, dipshit. You have probably watched a few cartoons and think you know something.

 

[Ambivalent1]

Of course he is, put your ego aside and admit they are ALL part of the problem. This shit has been on steroids since Willy left office.

Dude, I've been ranting about government debt since coming to this forum. And long before that.

Our politicians are only doing what we demand of them. If they didn't overspend, we would fire them and elect someone who will.

We get the politicians we deserve.

Pseudocons think it's the poor and Mexicans who are causing all this spending, when they really should be looking in the mirror for the culprit.

Tax expenditures are DOUBLE what we spend on welfare.

Sorry son, you are fixated on Trump and too myopic to admit all of the Gov is to blame, there is no differences in any of the political class.. They don't give a shit about what "we" want, they do what the Banks tell them to do. Do you think repeating the "pseudocon" makes you look smart? It's no different than franco using the word derp in every sentence.
Grow up.

Irony. Your are projecting your own narrow conspiracy theory thinking onto others.

Next, you'll be telling us its the international Jewish bankers behind all this.

LOL, your lack of knowledge is not my problem. Your Trump hatred has made into a little child. The Central Bank system and the BIS, learn something and get back to me.

I know all about central banking and BIS system, dipshit. You have probably watched a few cartoons and think you know something.

You don't know shit or you wouldn't confine your rage to Trump. You have a micro view of a macro problem. You're minor league boy.

 

[BuckToothMoron]

Read Tragedy and Hope, you'll find that debt is what runs the economy.

Money runs the economy, debt creates money.

Hence debt runs the economy. Fractional Reserve Banking is why the crash will come.There is more debt than there is money.

Yes, debt is the spending of tomorrow's income today.

Trump's fake tax cut stole $1.5 trillion out of the pockets of the unborn.

You are a very limited thinker G. Your thinking is stunted by your myopic hatred. Adults grow out of that.

Horseshit.

I watched the pseudocons wail and moan for eight years about Obama's overspending, and then suddenly go totally radio silent when Trump took office and promptly began doubling the deficit.

So fuck you, asshole.

That is the problem with belonging to a particular political party- you lose objectivity. Trump got elected by pandering to un and under employed people. He promised tariffs (horrible idea) to create American manufacturing jobs and a trade surplus. Trade deficits are generally an indication of a wealthy and healthy country.

Anybody confused needs to watch the short clip by a very good economist.