Fund Manager: A Debt-Riddled System That Is Hitting The Wall
SilverDoctors.com
March 17, 2019
The Fed always understates risks in the system, but Dave Kranzler explains that what’s really going on is a debt-riddled system hitting a wall…
by Dave Kranzler of Investment Research Dynamics
An elevated level of corporate debt, along with the high level of U.S. government debt, is likely to mean that the U.S. economy is much more interest rate sensitive than it has been historically. – Robert Kaplan, President of the Dallas Fed
Fed officials always understate risks embedded in the system. Translated, the statement above implies the Fed is worried about the amount of debt accumulated in the U.S. economic system over the last 8 years. Kaplan specifically referenced the $6.2 trillion in corporate debt outstanding as a reason for the Fed to stop raising the Fed funds rate. Non-financial corporate debt as a percentage of GDP is now at a record high:
The Rest…HERE
