Debt is expanding faster than income. There’s no turning it back, in fact. There can be no resolution. In the Financial Crisis it was fully understood that derivatives were the reason why debt is so dangerous. All of our debt which could be in the form of a mortgage, an auto loan, or anything else. It’s all collateralized and securitized into “investments” and could easily spiral out of control. This is why despite subprime being a relatively small part of the total, it created such a mess back in 2007. This is a very bad sign for things to come.
The average person today is able to live, barely. They can’t really save for the future. They can’t earn an income that will allow them a sense of security. Chances are, they won’t get a pension when they retire and their government money won’t be sufficient. They’ll need to work as long as their situation allows them to. Debt continues to pile up and there is no solution for the majority. Unfortunately, they’re told to get a good job, invest in a 401k, and hold for the long term. This hasn’t actually worked for anyone since pensions are underfunded and many people are still recovering from the Financial Crisis. Debt is a powerful tool. Will you be a victim of it?
‘Maxed out’: 48% of Canadians on brink of insolvency, survey says – BNN Bloomberg
Real US debt levels could be a shocking 2,000% of GDP, report suggests
The National Debt Is Now More than Ten Times Annual Tax Receipts | Mises Institute
Deficit surpasses $1 trillion: CBO | TheHill
Total Revolving Credit Owned and Securitized, Outstanding (REVOLSL) | FRED | St. Louis Fed
Average credit card interest rates: Sept. 4, 2019 – CreditCards.com
Why Are America’s Three Biggest Metros Shrinking? – The Atlantic
Subprime Auto Lender Checked Income on Just 3% of Loans in Bond – BNN Bloomberg
A sudden transformation in the stock market unnerved investors