After seven short years and trillions of dollars worth of direct liquidity infusions, credit guarantees, toxic asset purchases, and other debt relief bailout operations by the Federal Reserve and U.S. Treasury to rescue the economy and restore financial health to the country, we are right back where we were at the height of the great financial crisis in 2009, in terms of U.S. corporate debt defaults.
Big-government central planning has gotten us nowhere…
Hoisington – Quarterly Review and Outlook, First Quarter 2016:
Business debt: Last year business debt, excluding off balance sheet liabilities, rose $793 billion, while total gross private domestic investment (which includes fixed and inventory investment) rose only $93 billion. Thus, by inference this debt increase went into share buybacks, dividend increases and other financial endeavors…. When business debt is allocated to financial operations, it does not generate an income stream to meet interest and repayment requirements. Such a usage of debt does not support economic growth, employment, higher paying jobs or productivity growth. Thus, the economy is likely to be weakened by the increase of business debt over the past five years.
Big U.S. corporation debt defaults have spiked back up to a level last seen in 2009 – at the height of the financial crisis.
ZeroHedge 4/19/2016 / Michael Snyder, The Economic Collapse blog
USA Today: “So far this year, 46 companies have defaulted on their debt, the highest level since 2009, according to S&P Ratings Services. Five companies defaulted this week, based on the latest data available from S&P Ratings Services. That includes New Jersey-based specialty chemical company Vertellus Specialties and Ohio-based iron ore producer Cliffs Natural. Of the world’s defaults this year, 37 are of companies based in the U.S.”
It is time to unleash the power of a free market, citizen-driven economy, and it all starts here:
The Leviticus 25 Plan 2017 – $75,000 per U.S. citizen The Leviticus 25 Plan 2017 (1440)