U.S. Household debt experienced a brief lull during 2009-2013, but has been on a steady increase over the past four years.
The U.S. Household debt balance recently rocketed up to a new record high of $12.96 trillion.
Global debt levels are sky-high. U.S. and global financial markets are bulging badly with excessive valuations and leveraged risk profiles, and undoubtedly (once again) under-capitalized counter-parties in hedging arrangements.
Maudlin – Thoughts from the Front Line, Nov 25, 2017
Credit Strategist Michael Lewitt:
Anyone questioning whether financial markets are in a bubble should consider what we witnessed in 2017:
• A painting (which may be fake) sold for $450 million.
• Bitcoin (which may be worthless) soared nearly 700% from $952 to ~$8000.
• The Bank of Japan and the European Central Bank bought $2 trillion of assets.
• Global debt rose above $225 trillion to more than 324% of global GDP.
• US corporations sold a record $1.75 trillion in bonds.
• European high-yield bonds traded at a yield under 2%.
• Argentina, a serial defaulter, sold 100-year bonds in an oversubscribed offer.
• Illinois, hopelessly insolvent, sold 3.75% bonds to bondholders fighting for allocations.
• Global stock market capitalization skyrocketed by $15 trillion to over $85 trillion and a record 113% of global GDP.
• The market cap of the FANGs increased by more than $1 trillion.
• S&P 500 volatility dropped to 50-year lows and Treasury volatility to 30-year lows.
• Money-losing Tesla Inc. sold 5% bonds with no covenants as it burned $4+ billion in cash and produced very few cars.
The last economic crisis left American families reeling from the financial turmoil with 8.7 million jobs lost (Dec 2007 – 2010) and over 12 million home foreclosures,
U.S. needs a plan to insulate American families from the chaos that will accompany the next financial storm, and that means a powerful debt elimination plan for U.S. citizens:
The Leviticus 25 Plan 2018 – $75,000 per U.S. citizen