Global Slowdown Is Evident

The Buffet Indicator

The only time this indicator has been higher than today was during the Tech Bubble

Lacy Hunt: The Law of Diminishing Returns

Hoisington Investment Management’s Lacy Hunt and CNBC’s Rick Santelli discuss monetary deceleration, yield curve flattening and global debt.

 

Surging Credit Debt Defaults Sound Warning for Q2 Economic Results

Is the decreasing appetite for consumer credit being driven by tapped out consumers who recognize their inability to afford more, or are those same consumers simply not able to get any more credit as marginal debtors are now suddenly unable to keep up with the debt they already have?

As small-banks see a surge in credit defaults from non-prime borrowers, the latter is likely, and spells big trouble for an economy 70% driven by consumer spending. With very little savings to speak of, that spending must come from debt…debt that increasingly unavailable.

While many celebrated the record high US household wealth in the latest data from The Fed, what most missed was a record $1.0 trillion of credit card/revolving loans, a record $1.3 trillion of auto loans, and a record $1.5 trillion of student loans.

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