Debt

Small EU Firms Hold Mountain Of Debt, Could Be Next Major Headache For Banks 

The European Union is doing the same as they did in 2008-09, extend and pretend, dishing out cheap loans to businesses and hoping for a recovery.  What’s worrying today is that excessive optimism comes as European governments invest in the recovery by increasing public spending as the central bank keeps rates low and floods capital…

World's Top Economies Brace For $13 Trillion Debt Maturity Vortex

To kick off the New Year, the world’s largest economies face a massive global debt overhang due to the coronavirus-downturn; some $13 trillion in debt is coming due and will need to be refinanced in an ultra-low rate environment.  Seven top economies plus several major emerging markets economies “face the heaviest bond maturities in at…

The World Is Awash In Negative-Yielding Debt

Authored by Michael Maharrey via SchiffGold.com, So far, the US has escaped negative interest rates as a matter of central bank policy. Back in May, many thought a Fed move to negative rates was a real possibility. Of course, much of the world has operated under negative rates as a matter of policy for years. The…

This Time Is Not Different. More Debt, Less Growth

Authored by Daniel Lacalle, I remember that in 2009 three messages were constantly repeated: “In this crisis measures are different, because governments are investing in the recovery by increasing public spending,” “the funds from stimulus plans will strengthen the recovery “and “central banks help a stronger recovery by lowering rates and increasing liquidity”. Then, 2010…

"I'm Going To Get In Trouble For Saying This": Biden "Unlikely" To Cancel $50K In Student Loan Debt

President-Elect Joe Biden has been under pressure from the far Left within his party to cancel all student debt as one of his first acts in office after January 20. For example earlier this month a proposed Schumer-Warren plan demanded immediate student debt forgiveness of $50,000 for each and every borrower (with the exception of course for all who’ve…

Negative-Yielding Debt Exceeds $18 Trillion As Global Market Cap Hits $100 Trillion

Submitted by Christophe Barraud The pool of negative-yielding debt across the world exceeded $18 trillion for the first time in history, according to Bloomberg data. The move came after the ECB announced it will expand its massive monetary stimulus program by another €500 billion and will extend emergency bond purchases for nine months. In a context…

What Spending Slowdown: BofA Credit, Debt Cards Show Soaring Retail Sales

Ahead of Wednesday’s retail sales report, and in light of the recent sharp slowdown in the labor market and lack of progress on the stimulus front, most pundits expect a disappointing retail sales performance for the month of November, when retail sales are expected to drop by -0.3%, their first contraction since the April covid…

US Household Wealth Hits All-Time High As “Top 1%” Have Never Been Richer While Poor Drown In Debt

The Fed’s latest Flow of Funds report released at noon today showed the latest snapshot of the US “household” sector as of Sept 30 2020. What it showed is that one quarter after the biggest surge in household net worth on record when US household net worth jumped by $7.6 trillion to $119.0 trillion (which…

Surprise: Student Debt Relief Will Mostly Help Middle- And Upper-Income Households

Now that the air is heavy with talk of debt forgiveness, initially starting with the government’s $1.6 trillion student loan portfolio before Democrats move to a broad debt jubilee much to the chagrin of all those Americans who responsibly have paid their obligations every month, investment banks have started analyzing the impact of the various…

From A Hamilton Moment To Perpetual Debt Slaves: This Is The True Face Of The EU

Authored by Tom Luongo via Gold, Goats, ‘n Guns blog, Over the summer while the U.S. was mired in the worst kind of color revolution with race riots, economic shutdowns and the worst kind of divisive politics, the European Union was celebrating its great achievement. A seven-year budget and COVID-19 bailout package that was heralded…

As Dems Push Loan Forgiveness, Data Show Blue States Have Highest Average Student Debt

We know it’s hard for millennials to hear – especially considering how badly screwed so many of them are after racking up ridiculous loan balances into the 100s of thousands of dollars – but there isn’t a compelling moral argument for forgiving student loans. While Democratic politicians like Elizabeth Warren and Bernie Sanders like to…

Top 20% Gets 6x More Benefits from Student Debt Cancellation than Bottom 20%, New Study Finds

By Brad Polumbo From Sen. Elizabeth Warren to Rep. Alexandria Ocasio-Cortez, some of the most prominent progressive politicians in the country are pushing hard for widespread student debt cancellation. So, it’s fascinating to see a new study show that forcing taxpayers to pay down the roughly $1.5 trillion in government-held student debt is not a…

American Retirees Are Drowning In Debt

Via SchiffGold.com American retirees are buried in debt… Between 1999 and 2019, the total debt burden for Americans over age 70 increased by 543% and totaled $1.1 trillion according to data compiled by the Federal Reserve Bank of New York. Debt grew by 471% over the same period for those in their 60s and totaled $2.14…