US Household Debt Now Exceeds Pre-2008 Credit Bubble/Market Crash Levels. By Gregory Mannarino

in money •  8 years ago 

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Today, the Federal Reserve Bank of New York proudly reported that household debt here in the United States has now reached a new all-time record high, exceeding the last record high which was achieved right before the stock market/housing crash of 2008.

So what exactly is household debt? Very simply, this is the total amount of debt which is owed collectively by all the adults living in a particular household.
Well America, I suppose congratulations are in order?

Here is the spin.
The mainstream financial channel experts are saying that this time consumer debt, although it is now at a new all-time record high again surpassing the 2008 credit bubble, is different this time.
They are saying it's different this time because interest rates are lower today..
I ask you, are these mainstream financial Pundits learning impaired? Debt is debt, and the fact that we have now hit another all-time high with regard to household debt can in no way be spun into a positive thing.

So what we have here in America is a national debt at an all time record high, household debt at an all-time record high, a Federal Reserve who's balance sheet (the debt they are holding) at an all time record high, and a stock market which is near all-time record highs, (being inflated by all this debt).

What you will not hear from the mainstream financial pundits, is we have a labor force participation rate that is near historic lows, and a money velocity, (the rate at which cash is moving through our economy) also near record lows.

Here is a neat bit of info for you!
You cannot have an economic recovery without both the labor force participation rate, and the money velocity both moving higher!

So, the United States of America is now the largest debtor nation in the history of the world, being occupied by adults who are now carrying their largest debt burden in history!
Again, congratulations America...

Gregory Mannarino
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Greg, another great bit of info, thanks for passing it along to us. I have a 19 year old daughter that is in her 1st year of college. Everyday she get 2to 3 offer of credit in the mail weather it be a credit card offer or loan offer. She does not have any student loans, thanks to silver. We have raised her to understand that debt is a inslavement and not to get tied up in it, but if she is getting that many offers, everyone else in her position must be getting them as well. Iam sure that they are taking the offers of credit. Unfortunately our younger society does not have the knowledge of how bad debt is. Thanks for all that you do for us on keeping us uo to date.

Like drug dealers aren't they? Gotta get them hooked young.

Droug dealers is diffently a appropriate tag. We didnt really think it was that bad, boy where we wrong. I mean its every day. I mean she doesnt even work,and she gets that many offers a day.

She actually got a loan check in the mail monday, it was for $3000.00 and all she had to do was cash it. No income verification, no credit verification. Nothing at all just cash it. It was the craziest thing i had everyseen. I was proud though, i watched her shred it.

Thats really sick and indeed causing a lot of problems these days.
With all those examples on tv and social media.
And my opinion they should teach kids at a young age in the schools a bit about economy and what debts can do.
Same as teaching them basic first aid.

Yep outrageous that they'd be targeting young people like that. As we're all aware it is a form of slavery....

Now, I'm not completely condemning debt entirely, after all most of us wouldn't be living in a house without it or able to pay for unforeseen repairs. However, it's about being able to manage it and having a plan as to how it's going to be paid back. This is something which younger people may find more difficult.

The whole idea of having to pay interest on the debt is the biggest scam of all though. How can money created out of thin air have interested added to it?

Our kids have a dark future . It's sad . I am thinking of opening a family biz . It's the only way . Welding and plumbers never die

I love being debt free... @pocketechange

Congratulations @marketreport!
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Hooray! We bought into debt just in time for the rates to rise, crushing wealth and affordability. Ive never been more sure in my life, that I will see soup lines in the near future.

Your right but we already got them... they are just stealth... just like the YouTube and Facebook stealth banning that brought me here to Steem... hard to notice..

Several left full grocery buggy

EBT budget and system issues cause many to leave grocery carts like this one event

http://www.dailymail.co.uk/news/article-2458815/Louisiana-Walmart-shelves-left-food-stamp-glitch-gives-shoppers-UNLIMITED-funds-hours.html

Longest soup lines in history

https://theconservativetreehouse.com/2016/09/06/right-now-we-have-longest-soup-lines-in-history-of-america-you-just-cant-see-them/comment-page-1/

I can only imagine how the soup kitchen lines would look presently if EBT cards were not in existence. Im sure in future ill get to see (unfortunately) just how that will look.

We are doomed.

We are only doomed if we refused to take action to solve this for our own lives and the lives of others... like steem for example :)

We already have soup lines, but they're now known as EBT cards.

Yes the soup lines have been replaced by EBT Cards.

Discrete soup lines make for fraud .

Things are so messed up. Up is down and left is right! Interesting time to be alive.

Seriously, Greg, you go and spoil the celebration with facts!
Come on, give them some credit for their actions (and more credit and more credit and more credit and more credit and more credit).

The hole system has turned into a Ponzi scheme. The greed of the PTB will be their downfall. They forgot "Take care of the little guy and the little guy will take care of you"

I do not miss any of your videos, and I am learning a lot from you. Thanks.

I have followed him for years. He is a straight shooter.

They are learning impaired libtards. So do we celebrate the up . Dow up and student loan debt up . Rates going up , debt up . If it's up, it must mean something good . The only thing up .. the party is up . So get on your dancing shoes 👠 party like it's 2008 lol short !!

The Fed wants to keep you and your family buying like crazy and up to your eyeballs in debt to keep you chained to the system.

Thanks Greg. Also, look at the total consumer debt and outstanding mortgage debt also is high...

Total Consumer Debt

High consumer total debt

Mortgage Debt Outstanding

High Mortgage Debt Outstanding

Also check out the increase in bitcoin in Korea and India

https://steemit.com/bitcoin/@kingscrown/bitcoin-in-india-and-korea-at-2000-usd-will-world-follow

Yes I just wrote a post about US household debt since around 1952 and now compared to world.

When it is said U.S. owes 20 trillion dollars, who holds that debt?

Mostly china and backed by our labor and our unconstitutional 3rd party created entity.

Federal reserve, other central banks, private banks and private investors

I've been Debt Free for years and I love it... @pocketechange

Well does debt from buying silver count ?

Holding Silver doesn't make me feel like I'm in debt unless I'm paying Credit Card Interest on it...lol... You know how high their interest is, right...??? @pocketechange

Thanks for the insight Greg. I have gained a tremendous amount of understating of the stock market through listening to you. I will avoid, and hopefully profit from what is so obviously about to smack mainstream obsessed and non-critical thinking America right in the mouth. Luckily I was too young to get hurt in 2008, and luckily I wont in the next crisis either.

On-target as always

Thank you Greg for keeping us up to date! follow me, I'll follow you!

What was the definition of insanity again?? OO yea.. now I remember!
Thanks Greg, keep up the posts!

  ·  8 years ago (edited)

Greg, thanks for the metrics of labor force participation rate and the velocity of money to really gauge the strength (or lack of) of our economic recovery. Keep up the good work!

Thank you for your ongoing efforts to tell us how it really is Greg. As you've been saying for a long time, nothing is real. I think many people are suffering with the cognitive dissonance that results and I see palpable social impacts. Even with eyes open, you never feel quite prepared enough.

congrats! wooooo! yeah baby yeah!

Let this crash happen already. Let's get rid of this debt fueled society and get back to basics to save our children and future.

I literally wrote a post 10 minutes before this that mentioned money velocity and no economic recovery haha what are the odds

It's always different THIS time!

Things are about to get interesting.

Wow, congratulations! Not something to be proud of. Thanks for the info Greg.

It's kind of comical , paying debt with debt $

Truly disheartening, but for many years this generation allowed this to happen. We allowed the soothing songs and whispering tv shows put us to sleep. All we can do is unite and meet at the common ground, it will not be easy. However, life is not easy. Hold the line and lets march on brothers at arms!

Very troublesome news.

Yep been telling friends there and they don't believe me. Nor the consequences of this issue. Government needs to bear some blame I feel.

I retired from working at 58. Now I'm going to start making money. Finding your sites, Website, YouTube and now Steemit has been enlighting and motivational. I do believe "conventional wisdom" maintains the status quo. My only hesitation is: Why do you do this?

Because I want people to have an understanding as to what is really going on. It is a mission of mine.

I watch your Youtube videos and check your sites daily. You can add me to your mission success column. Hopefully, I can report back to you in a few months that I have successfully applied some of your investment insights. Tomorrow I will develop my Steemit site to chronicle my investing journey from the beginning. I just got my TradeStation account using their TradeStation Salutes promotion and am studing the training they have available. I certainly will be linking to many of your posts along with discussing my experience with TradeStation Salutes.

Thank you. Your sites have helped me make and keep money.

Just sad but the masses are brainwashed that debt is a sign of wealth or sound I say appearance of it. Like David Copperfield says "It's all an illusion."

Getting ugly out there. They say crypto was invented for the poor in impoverished nations but it could help save the middle class in America and the West from dying out entirely.

Whats the best way to fix the debt bubble ?

With a pin prick to pop it.

I believe Americans are waking up!
I personally know of many friends that have shredded their credit cards and are in a cash n carry situation, and this is a great situation for them.
But they also lack in basic home supplies.... This is what people also need to understand, stock up on food and medicine. If a banking holiday comes around ( and it will ) have extra food and supplies for at least three days... just basic necessities will make your life easier and safer.

Debt is absolutely not a good thing and people are enticed into taking more of it on constantly. It seems like in some cases it's to keep up appearances and look good and sometimes it's literally how people survive on a day to day basis. Either way it's a house of cards waiting to collapse and it's not going to end well. Factor in the amount of automation in the workplace killing jobs and the numbers are probably going to look even worse than in 2008. Thanks so much for all the good work, truth and information you're sharing here at @marketreport, I really appreciate it.

Thanks Greg for your info. You da best! GO GO GO!

Most other countries are trying hard to catch up.

Between college and housing, you can force an entire generation - men and women - into debt serfdom. School loans equate to a mortgage without a house, and most still buy the house on top.
Debt will always be encouraged because our entire system is based on its proliferation. Plus, it gives the banks a chance to charge insane interest on money created from nothing, or seize the underlying asset if someone doesn't pay.

The scariest thing Is that last time a lot of that debt got absorbed by government (under the form of bailouts, fed balance sheet growth etc) but they haven't done digesting what happened back than yet.

If we where to experience a second debt crisis like we had in 2008,... The medicine we used back than will be out of commission, and the results will be far worse than they where in 2008...

I do however agree with the FED statement that this debt is different due to a lower interest rate.

Your capacity to pay off a debt des not depend on the total amount owed, but on the monthly payment due. A high principal with a low interest can be easier to pay off than a low principal with high interest.

Spot on as usual Greg! Same deal in Australia, in fact I'm pretty sure Aussies have the highest household debt to GDP in the world......maybe you guys are now in the lead?

Yep they're all complete idiots and don't know what they're talking about.....no surprises there really!
I think we're all well trained to see beyond their lies and disinformation!!!

That depends on whether it's majority consumer debt(being paid for by the debtor), or leveraged debt(being paid for by someone else). Being in good debt(that puts cashflow into your pocket) vs bad debt(that takes cashflow out of your pocket). Would have to dig deeper into the figures to see what the % are.

It's amazing to know that once upon a time in America: The husband's wage provided everything without the need for borrowing...A Home, Car, Vacations & College Tuition. And who should we blame. Answer: Central Bankster counterfeiting and pretending that credit is "real" money. Real Money cannot be counterfeited. In Crypto & Precious Metals We Trust.

Very interesting Greg..............Thanks for the video

take a look to brazil the stock exchange is crashing

Proudly reported, "Love it" :)

The bank interest rates are lower not credit card rates

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Thanks again Greg, Great material as always. Ive now folliwed you over from you tube so ill see ya no matter what. Keep up the good work!!!

So, we all know the debt is out of control. Forclosures happening all around and yet I still see construction of new homes going up while investors are grabbing up all the foreclosured homes and renting out. It cost MORE to rent than own a home. It's hard to comprehend just how one loses their homes because banks are pushing forclosures yet they somehow find the money to rent. When you talk about credit cards, you see people charging away but no cash. So that's a strong sign your already into cryto-currency. Courts are filling up with bankrupcys and stores closing, some due to internet based buying, I mean who doesn't use the internet to buy these days? I believe Greg and this all is going to all hit hard, people need to prepare for what has happened in other countries and happening here right now.

can someone please steem me :)

I heard that housing sales are down due to the high cost. I don't know if this is true but if so, it must mean that rentals are increasing. People do not have the equity that they once had. I think this is different than the 2008 bubble due to the ease of getting a home loan as banks have become stricter on home loans. by the way, silver got smacked today!

From USA watchdog Greg Hunter Intrrview:
Mannarino says the market will always try to find fair value for stocks, bonds, real estate, currencies, gold and silver. Mannarino contends, “The market tried to correct itself in 2008. It was not a meltdown or a crash, it was a correction to fair value. Real estate was massively overvalued, and it was correcting to fair value. The stock market was massively overvalued. It was trying to correct to a fair value. We saw what happened to gold and silver as it went up. It was trying to move to fair value. This is what I have been saying, and that is nothing is real. I challenge anyone here to refute what I am about to say: There is not one asset class, not one, that has a real price discovery mechanism right now. How do we know this is true? The central banks, all of them, are distorting the debt market. It’s the largest part of this market, and they are artificially suppressing interest rates. This creates distortions, and every asset derives its value from what is occurring in the debt market. . . . So, if the debt market is not being allowed to achieve a fair value for the debt . . . then nothing across the spectrum of asset classes, including your house, is real. The price of it is fake. The price of your metals (gold and silver) is obviously fake. The value of your debt note is fake. You have to understand this to get a true perspective on what is occurring.”

In closing, Mannarino says the next meltdown will be far worse than the last, and it will involve the entire world. Mannarino predicts, “If the system melts down in its current form, in other words, we cannot acquire more and more debt, we can’t borrow from the future to sustain where we are now, half of the world’s population will not survive. That’s how dire this can be.”

It's a debt culture. most people haven't learnt anything to resist the temptation.

Another great article Greg. Hopefully if ever see the Trump tax cuts household debt will decrease and we can get a real economic recovery.

More great insight & commentary

Thank you.

I'm not watching the mainstream '' experts'' for a long time now. Just make my head hurts..

Very Informative! 👍🏻

Hey Greg, I have a nephew 20 years old. I found him a super nice low mileage mid 1990’s GMC pick up. It was a garage kept beauty that still smelled new. He had it for a year or so but he wanted 4 wheel drive. I told him to save his money and buy the parts to convert it to 4 wheel drive. I warned him about getting into debt . I told him the lender would own him. He did not listen to his uncle. He bought about a 7 year old used Ford 4 wheel drive. For what he paid , he could have just about bought a new one.
I spoke to my sister today and she told me he wants to sell the Ford because of the fuel cost. Now he has found out he owes more than its worth. His payments are so high he has no money left to buy gas.
He is in the process of learning a life lesson right now.

Tinpan

They are throwing money into ripple it seems. Maybe they are preparing for the impending collapse.