The State of the American Debt Slaves, Q1 2019

[dozu888]

Let's hope that you are correct.

of course nobody knows for sure... but..

- there are factors that my pro boys can control, and that is most domestic - dumb money ownership, Fed policy, Gov's fiscal policy.. mostly are tail winds and all my boys need to do is to make sure that short term speculators do NOT benefit from the rally. Therefore they have to shake it from time to time.

- however, the market is so vast, even the pros can lose control... 2008 is one example, when even the big firms went down.... what are the unknowns around the corner? China debt explosion? nobody knows.

we'll just have to keep a flexible mind.

 

[dozu888]

Seems few "get it".

"All debt gets accounted for by somebody, eventually".

Most often, the one who "pays for it" is not the one who enjoyed the borrowing/spending.

America has what, $22T in national debt... + another $200T in unfunded obligations? Who is to pay for that and how?

"Thank You", greedy mofo politicians... for spending us into ruinious debt and destroying our future!

unfortunately there is no solution to this... yet.

the mofo politicians, we have nobody to blame but ourselves, because they are all voted in by the democracy system.... I always say democracy is decision making with 100 IQ, which is pretty stupid to be honest.

the system we have is not perfect.... but there is nothing better out there... look at China... out of control infrastructure build... they racked up debt far faster in the past couple of decades.

what is the solution? 'singularity' where AI makes decisions for us? perhaps an alien space ship can come down from the heavens and tell us what to do lol.

meanwhile, just enjoy life... I guess.

 

[wartrace]

Other than trading or business leverage what are your thoughts on personal debt?

I can understand the notion that you might as well lead a highly leveraged lifestyle since YOLO.
On the other hand I lean towards debt free living.

 

[dozu888]

Other than trading or business leverage what are your thoughts on personal debt?

I can understand the notion that you might as well lead a highly leveraged lifestyle since YOLO.
On the other hand I lean towards debt free living.

good for you... debt free, worry free.

 

[piezoe]

The more important factor in my mind is not that the broad market continues to move up, but at what rate does it move up compared to inflation adjusted GDP growth rate. Individual companies can and do grow, or decline, at rates far different than the overall economy.

 

[RGLD]

Can someone please explain how a recovery financed by debt works?

So for every dollar we "make", we owe in debt? So market is up but debt is up meaning the whole thing was debt to begin with?? Like me borrowing a dollar and say I earned a dollar?

 

[nooby_mcnoob]

Can someone please explain how a recovery financed by debt works?

So for every dollar we "make", we owe in debt? So market is up but debt is up meaning the whole thing was debt to begin with?? Like me borrowing a dollar and say I earned a dollar?

Dalio explains it pretty well in economic machine check it out

 

[RGLD]

Dalio explains it pretty well in economic machine check it out

No he doesn't. If we're talking about the same video, it's just a comprehensive video on how the economy works on long/short term debt cycles. He mentions that when debt gets too big, we're due for a recession. Is this one of those times? I don't know. Maybe it can go higher before we crash who knows. 24 Trillion is just a number, it could be 50 trillion and we can stack more cards on top.

 

[nooby_mcnoob]

No he doesn't. If we're talking about the same video, it's just a comprehensive video on how the economy works on long/short term debt cycles. He mentions that when debt gets too big, we're due for a recession. Is this one of those times? I don't know. Maybe it can go higher before we crash who knows. 24 Trillion is just a number, it could be 50 trillion and we can stack more cards on top.

Paraphrasing: "The credit you create is someone else's income", and "The debt never gets paid off"

 

[ironchef]

One of the longest recoveries we currently enjoy is fueled by debt and not growth. When it ends, it will be really bad for everyone.

For those who do not take part in the debt binge and use this economic recovery as a chance to deleverage they will do OK when it ends.

The key to prosperity as usual is not to follow the herd and be out of sync.