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Are We in Another Credit Bubble? And Is It Different than Before?
May 28, 2015 11:06 pmVideo
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Whatever your politics, creed or nationality — we can all agree that a huge catalyst for the 2008-9 global financial meltdown was the universal binge of bad credit.
A huge part of that bad-debt pile were the “don’t-ask-don’t-tell” high-yield bonds — a.k.a. junk bonds — which were used to fund a lot of things, including corporate takeovers.
You might still remember how, at the time, few saw any reason to question the upside potential of these lower-grade yet higher-yielding loan instruments. Here, the following articles from 2007 recapture the scene:
The ensuing credit implosion systematically restored the political correctness of the word “junk,” as high-yielding bonds plummeted in the worst debt crisis since the Great Depression.
Which brings us to the trillion-dollar question: What about now? Or, expanded in a handy bullet-point format, the same question may be phrased like this:
Well, the following chart from Elliott Wave International’s May 2015 Elliott Wave Financial Forecast shows you that — yes! The credit bubble underway in the United States today is different than the one that triggered the 2008-9 crisis.
It’s bigger.
Our new, May Financial Forecast goes on to explain why it is so with an equally shocking chart of U.S. consumer credit since 1980.
You can see that second chart in part 1 of our brand-new, 3-part report titled
Credit Insanity: The Biggest Debt Bomb in History and the Fuse is Lit
Created for paying subscribers and now accessible to the public for the first time, this eye-opening new report reveals the precarious consumer, corporate and government debt situation around the world. Read this three-part report now and hear directly from the top analyst at the world’s largest financial forecasting firm about key research, statistics and concerns about U.S. and global debt, as well as its imminent threats to investors.
Get your free report now »