U.S. Business Debt As % Of GDP At Highest Level Ever! Danger Sign!

Jan 2016
46,304
42,202
Colorado
#1
Um, shouldn't we regard this as a danger sign? That U.S. Business Debt, as a percentage of GDP, is at the highest recorded level EVER?

Corporate America, not banks, could cause the next recession

I certainly would...….

From the link:

After a decade of low rates, companies have taken on more debt relative to the size of the economy than ever before. Total US business debt as a percentage of GDP is at a record high, according to David Ader of Informa Financial Intelligence.
 
Likes: Friday13
Apr 2015
12,887
2,198
Katmandu
#2
Um, shouldn't we regard this as a danger sign? That U.S. Business Debt, as a percentage of GDP, is at the highest recorded level EVER?

Corporate America, not banks, could cause the next recession

I certainly would...….

From the link:

After a decade of low rates, companies have taken on more debt relative to the size of the economy than ever before. Total US business debt as a percentage of GDP is at a record high, according to David Ader of Informa Financial Intelligence.
There is no mention of Corporate debt as a ratio of GDP in your cite, only nominal debt.
 
Apr 2015
12,887
2,198
Katmandu
#4
Huh?!?? It's RIGHT THERE, in the quote from the link!! Have you started drinking early today, or something?!??
You would think that he would have quantified it so the reader would have some feel for the magnitude of the change instead of just taking his word for it?
 
Jan 2016
46,304
42,202
Colorado
#5
You would think that he would have quantified it so the reader would have some feel for the magnitude of the change instead of just taking his word for it?
It was quantified, as to the amount: A cool $6.3 Trillion.

And, you know, a trillion here, and a trillion there, and pretty soon, we're talking real money.

[There were also several embedded links you could have followed for more details.]
 
Likes: Friday13

RNG

Moderator
Jan 2015
13,499
9,314
Left coast
#6
The economic analyst for the CBC wrote a report today saying that the markets are basically 100% sure the Fed will raise rates at the next sitting and further about 95% that the rates will be increased, probably by 0.25% at each of the four sittings next year.

Higher rates on all that debt is bad news. But his point is that it will in fact be a real example of trickle-down. From mortgage debt to credit card and bank loans, Joe and Josephine Average are going to be hurting too with the large personal debt being held by the average person these days.

Wealth doesn't trickle down, but financial hurt does.
 
Aug 2018
1,387
2,202
Vancouver
#7
Threads like this make me feel weird using the “like” button.

I don’t actually “like” hearing a prediction that people will suffer.
 
Apr 2012
57,332
42,148
Englewood,Ohio
#8
The economic analyst for the CBC wrote a report today saying that the markets are basically 100% sure the Fed will raise rates at the next sitting and further about 95% that the rates will be increased, probably by 0.25% at each of the four sittings next year.

Higher rates on all that debt is bad news. But his point is that it will in fact be a real example of trickle-down. From mortgage debt to credit card and bank loans, Joe and Josephine Average are going to be hurting too with the large personal debt being held by the average person these days.

Wealth doesn't trickle down, but financial hurt does.

This is exactly what happened in the last recession! I am not sure why people do not understand this.

People were encouraged to buy houses well beyong their means. They took on excessive debt, encouraged by The Administration and Banks.

Of course many of them let greed rule. That is happening again in the inflated Stock Market. Now, the Fed announced a small rise in interest rates. As that goes on inflation will get worse.

Of course I am speaking from a personal point, but that is what the average person does. My house has increased greatly, much past the level it was before the recession, but that is nothing but paper profit. If you buy another property it would be the same.

Houses are selling within a week of them going on the market here. We actually have a housing shortage.

I know that experts like statistics. The average person looks at their situation.:)
 

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