tag:blogger.com,1999:blog-7982981413278241287.post234929262220862296..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: Is America Really De-Leveraging?Dave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-7982981413278241287.post-41336958674627174842012-01-24T19:13:50.288-07:002012-01-24T19:13:50.288-07:00The personal debt burden is shifting. Some are pa...The personal debt burden is shifting. Some are paying down / defaulting. Others are loading up.<br /><br />Students are going from litte/no debt to a mountain of non-dischargeable debt. For a country that would like to have a peaceful populace, loading the young demographic with special and big debt is a bad recipe. At some point they will figure out why they are debt slaves, and they might do something about it.Jonhttp://curedmyapathy.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-26388450495931091212012-01-24T09:12:56.515-07:002012-01-24T09:12:56.515-07:00Don't you think a lot of the problems with pe ...Don't you think a lot of the problems with pe have more to do with the disassociation of acquiring the debt and when it fails the assets of the partnership that created the debt have no linkage to its repayment when extraction techniques like div recaps is how they make the bulk of their profits?<br /><br />David Stockman on Mitt, Newt and Crony Capitalism<br /><br />Former Ronald Reagan OMB director David Stockman joined us on The Dylan Ratigan Show today to explain explicitly why both Mitt Romney and Newt Gingrich are incredible offenders and beneficiaries of corporate communism or, as he likes to call it, “crony capitalism.”<br /><br />http://www.ritholtz.com/blog/2012/01/david-stockman-on-mitt-newt-and-crony-capitalism/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-41871191886564251862012-01-24T07:47:46.621-07:002012-01-24T07:47:46.621-07:00I don't include corporate non-financial debt i...I don't include corporate non-financial debt in my analysis. i'm pretty sure the financial sector debt does not include FNM/FRE debt and the Govt debt load for sure does not. Either way, the overall debt load of the economy has grown and it can be argued that the household debt load has not really shrunk. <br /><br />And I didn't introduce the idea of collateral value in terms of what FNM/FRE debt is actually worth. That's a whole other topic. My guess is that, barring laws preventing it, the Chinese will eventually swoop into this country and soak up most of the housing assets for a lot less than where they're valued now.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-82092666603455475592012-01-24T06:38:23.350-07:002012-01-24T06:38:23.350-07:00Really good information but there is one point I d...Really good information but there is one point I don't understand. The Fannie\Freddie debt. Is it fair to add this to the overall debt load? For one, it must have been simply reclassified from the private\corporate column to the public column. So that wouldn't be an increase so much as a transfer of debt from one to the other - correct? Secondly, this debt - while certainly toxic - has SOME value. Say the assets backing that debt are worth 50% (and I think it is arguable that those houses are worth well north of 50%), wouldn't it be fair to say that the increase of debt to the public side of the ledger is only $3.5 trillion?<br /><br />I completely agree with your overall point. But unless I'm not understanding this right, throwing in $7 trillion of new debt onto the pile is a little bit misleading.WouldaCouldaShouldahttps://www.blogger.com/profile/17909470105380260795noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-84802270452326490312012-01-24T06:01:36.393-07:002012-01-24T06:01:36.393-07:00If everything is fixed, nothing matters...every on...If everything is fixed, nothing matters...every one that should have been a major loser ie all the overleveraged players were saved and enriched..<br /><br />now...<br />The Ron Paul FIX is in: a SGT micro-doc<br /><br />http://sgtreport.com/2012/01/the-ron-paul-fix-is-in-a-sgt-micro-doc/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-30879783989381751522012-01-23T21:58:43.858-07:002012-01-23T21:58:43.858-07:00system would crumble in a major deleveraging...onl...system would crumble in a major deleveraging...only way is to print base reserves...if i'm on the same page Dave, the fed/usg has simply taken the debt (credit) off various balance sheets and onto their own...and they just have this crap sitting on their balance sheets...but at some point, they will either need to write-down or print and make good on their promises on a nominal basis...<br /><br />and since they won't deleverage on a major scale, printing is inevitable...<br /><br />so economic growth is gone, unemployment is rising and no matter what govt/fed/business as a whole do, things get worse...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-45943675733540823612012-01-23T18:38:29.177-07:002012-01-23T18:38:29.177-07:00Dear Dave, I think you will find that the entire d...Dear Dave, I think you will find that the entire decrease in consumer household debt you list above is from the loans being written off or partially written down......Jerry in Pa.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-38652313603016634112012-01-23T18:35:12.887-07:002012-01-23T18:35:12.887-07:00There won't be any de-leveraging either, until...There won't be any de-leveraging either, until---<br /><br />(1) The big banks write off and/or foreclose their worthless toxic shit mortgages<br /><br />0r<br /><br />(2) An economic crash<br /><br />Don't hold your breath waiting on # 1.Proximonoreply@blogger.com