<blockquote>‘..the “group” .. debt..’
- Frans Veldman (
Context)</blockquote>
'..as the BIS economists put it, this is “a world in which debt levels are too high, productivity growth too weak and financial risks too threatening”..'<blockquote>'First, the unsustainable debt. Since 2007, the pile of debt in the world has grown by $57tn (£37tn). That’s a compound annual growth rate of 5.3%, significantly beating GDP. Debts have doubled in the so-called emerging markets, while rising by just over a third in the developed world.
..
In short, as the BIS economists put it, this is “a world in which debt levels are too high, productivity growth too weak and financial risks too threatening”. It’s impossible to extrapolate from all this the date the crash will happen, or the form it will take. All we know is there is a mismatch between rising credit, falling growth, trade and prices, and a febrile financial market, which, at present, keeps switchback riding as money flows from one sector, or geographic region, to another.'
-
Ignore The Dead Cat Bounce: The Next Financial Crash Has Already Begun, November 5, 2015</blockquote>
'..Essentially, we have created mountains of debt to solve our existing debt problems. That's some great logic. What a fine mess we have created.'<blockquote>'<a href="[
www.google.com] recent report from the Institute of International</a> puts that debt at extraordinary levels when compared to 2008. The Institute puts those debt levels as having doubled from 2008 to 2014 and now totaling $6.8 trillion. That's bad enough, but where it's really bad is in emerging markets where non-financial corporate bonds have swelled to $2.6 trillion (up triple since 2008) and now is over 80% of GDP of those emerging markets.
..
So, in the end, we have all sorts of loose ends that will take years to work out. We have distortions all over the place. We have investments made that probably never should or would have had we not pushed rates to zero and the augmented it will a debt issuance binge. Essentially, we have created mountains of debt to solve our existing debt problems. That's some great logic. What a fine mess we have created.'
- L.A. Little,
The real impact of a decade of low interest rates, November 5, 2015</blockquote>
Context<blockquote>
Mises - Money and Credit - '..the recession was a problem of under-saving, and over-consumption..''The scope of the down cycle is proportional to the excesses of the preceding Credit boom.''I recall similar dynamics prior to both the 1998 and 2008 crisis episodes.'(Haptopraxeology) - '..We have lost three centuries as a result of ignoring our scholars!'</blockquote>