Mike Swanson is right that people draw off the recent past. This is different though. Last time financials were hiding debt obligations on toxic assets that they hid via Structure Investment Vehicles. It's like hiding all the toys and clothes under the bad and telling the rating agency look my room is clean. So I don't see this becoming a real estate crisis. But I do see a lot of retailers going out of business and easy credit helps them prop up their life style that they could only afford pre Amazon and Alibaba. But even larger are all the debt slaves created by the department of education. No one borrows more and reloans than them. They borrow and low rates and loan at higher rates with a government guarantee that recipients are not refused AND can not declare bankruptcy. We've got a lost generation living on credit to pay debt short term by going further into debt. (loan number 2 to pay loan number 1)
The Fed lowing interest rates will only exacerbate the problem and encourage more lending.
Coming economic disaster
Coming economic disaster
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Re: Coming economic disaster
Get The Empire Unmasked here