This is something to celebrate, right? People are paying off their debt, right?
Wrong. It is almost scary how closely the decline in US Household debt correlates with the charge-offs of mortgage and consumer loans.
People are defaulting, not paying them off.
However, there are reasons to be optimistic about Greece and that it can rise from it’s difficult situation.
Click for a discussion about Greeks Bearing Bonds.
State pensions are in a world of hurt, and you and I will be subsidizing them in the future. Do you think this will cause some slowdown in state revenues and resources? Of course.
Does the economy and the stock market go in sync? Is one a leading indicator for the other?
How do you value the stock market? Forward P/Es or Reported P/Es?
And how will our current deficits affect the answers to all these questions?
This is one of the best articles of the year, packed with information for you to fully understand our current situation. For your convenience, I’ve highlighted what I think is most important.
How about 100 years?
Norfolk Southern is issuing a 100 year bond that will mature in 2110!
Is this a good or bad sign?