Fund Manager: The Debt Bubble Is Beginning To Leak Air
SilverDoctors.com
November 24, 2017
Dave Kranzler says “low inflation” is not the reason the Fed is not raising rates. Here’s whats really going on…
by Dave Kranzler of Investment Research Dynamics
“The current state of credit card delinquency flows can be an early indicator of future
trends and we will closely monitor the degree to which this uptick is predictive of
further consumer distress.” – New York Fed official in reference to rising delinquency rate of credit cards.
The recent sell-off in junk bonds likely reflects a growing uneasiness in the market with credit risk, where “credit risk” is defined as the probability that a borrower will be able to make debt payments. This past week SocGen’s macro strategist, Albert Edwards, issued a warning that the falling prices of junk bonds might be “the key area of vulnerability that could bring down the inflated pyramid scheme that the Central Banks have created.”
The New York Fed released its quarterly report on household debt and credit for Q3 last week. The report showed a troubling rise in the delinquency rates for auto debt and mortgages.
The Rest…HERE
