Wednesday, 1 November 2017

The U.S. Isn’t Prepared for the Next Recession

quote [ Millions of people remain in perilous financial shape, with little to buffer them in the event of a layoff. Roughly half of respondents to a Federal Reserve survey conducted in 2015 said that they could not come up with $400 in an emergency, with a third saying they could not cover three months of expenses, even if they sold assets, dipped into retirement ]

Interesting read - I'm looking at the huge bubble of a DOW right now, and have been shifting some assets around. Looks like subprimes are a big thing again as well, with quicken the biggest provider of them all currently. They try to claim they are not a subprime lender, but do a search on "quicken rocket mortgage."

Sad that people completely seem to have forgotten about 2006-2008 all of a sudden.
[SFW] [business] [+2 Underrated]
[by knumbknutz@9:51pmGMT]

Comments

steele said @ 12:06am GMT on 2nd Nov [Score:2]
Lol. "Next" recession.
spazm said @ 12:14am GMT on 2nd Nov [Score:2]
No worries, you guys have the greatest business man of the world at your service!
Mythtyn said @ 11:52pm GMT on 1st Nov [Score:1 Insightful]
Student loans will be the next issue.
satanspenis666 said @ 4:11am GMT on 2nd Nov
Probably not. Household debt to GDP has actually been decreasing. I'd be more concerned about public debt, which is larger then household debt and is increasing.
Mythtyn said[1] @ 3:38pm GMT on 2nd Nov
I consider student loans public debt in that if those hit the fan then its all of us that are going to be footing that bill. But yes, I agree with your assessment.
midden said @ 9:55pm GMT on 1st Nov
I do hear a lot of "Quicken Rocket Mortgage" adds in my podcast feed. I wonder if mortgage problems, like pharmaceutical problems, were exacerbated by advertising.
norok said @ 11:30pm GMT on 1st Nov
I wouldn't count on the housing market to be the crux of the next financial collapse. Calamities rarely come from where they are expected. That's why they are called Black Swans.

My guess (and it's just that) is a structural breakdown of ETFs.
Kama-Kiri said @ 1:56am GMT on 2nd Nov
"Congress too has less room than it did during the Great Recession, with the country’s debt burden as a share of the overall economic output rising from 63 percent to 104 percent."

And that's accrued over a long period of economic growth. Imagine what it will do in a depression, where the economic output (the divisor in the debt burden calculation) plummets.

The quote above is really the key point of the whole debate. How you interpret it will depend on your political stripes. Conservatives will demand cuts to programs, liberals will insist that businesses (and wealthy individuals, or perhaps even everyone) pay more tax.

I'm in the liberal camp on this, because it seems to me that if the economy is growing but only the companies are benefiting, rather than employees, the imbalance is on the revenue side and not expenditure. I think everyone can agree though that expanding social programs is not sustainable unless government revenue is increased somewhere.
SnappyNipples said @ 6:35am GMT on 2nd Nov
Strange, the way I remember it, we were not ready for the previous recessions as well.

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