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> The fourth such debt wave started in 2010, and is the fastest rising as well as the largest. It's largest because unlike the first 3 regional debt waves, thi
by elfexec 7y ago
> The fourth such debt wave started in 2010, and is the fastest rising as well as the largest.
It's largest because unlike the first 3 regional debt waves, this one is global. US, EU, China, Japan and every major economy just printed money to kickstart growth since 2009. Should be interesting to see how this one resolves itself.
- onlyrealcuzzo 7y agoWell, anything later should be larger just because of time and inflation. Is it larger proportionally, and if so, how much?
- ksec 7y ago>Is it larger proportionally.... It is hard to measure, if you only measure Debt Per GDP Ratio, you ignore the interest rate which may be very low or even zero. May be Interest per GDP Ratio would be a better metric, which I have yet to see any numbers of figures given out. ( And I cant be bothered to work it out myself ) Then there is the Debt Per Asset. For example while China has on the surface a huge debt problem, they also have much more asset ( on paper, assuming it can be trusted ) in their book. There are also other things like those previous Debt Crisis were trigged by bubble, which was the result of people taking debt into those bubble and bursted. We dont have a bubble right now. Everything is ridiculously stable in relative terms, growth is low compared to previous decade, and nothing much to bet against. S/P 500 P/E are still in 20s despite it being in record high. Most companies have very decent cash flow. And most of those cooperate debt were if money if so cheap why not take it. Apple has 150B debt, people didn't freak out because they are still 100B Net Cash positive. I just dont see another crisis happening yet.
- gogopuppygogo 7y agoIf by interesting you mean devastating then I concur.