Student Loans

Seven Charts For Bullish Investors To Ignore

Wall Street still exudes widespread optimism that 2017 will provide another year of solid gains for stocks amid stable albeit unspectacular economic growth and only gentle interest rate rises. However, as The FT details, all is not well in reality, and the following seven charts will hearten investors of a more bearish persuasion...

Financialization & The Erosion Of Growth

"As fees go up by half-a-percent, we reach into the client’s balance sheet, snatch the half-a-percent, and turn it into income; it’s almost magic - capital into income... but we lower the savings rate of our clients (savings and investment rate) by half-a-percent as our fees go up, so we get short term GDP kick from our income, at the expense of lower long-term growth on the part of the system."

What Makes Millennials Disturbingly Different?

In stealth fashion millennials are rapidly transforming society...The era of the US economy sustaining itself via consumption may die as the Millennials become the economy! Their motivations and expectations are completely different than any prior generation and the changes will be profound.

The Unavoidable Pension Crisis

"A bear market is coming which will be the match that lights the fuse... The real crisis comes when there is a 'run on pensions' when 'fear' prevails benefits will be lost entirely."

50% Of Americans Live Payday-To-Payday; 33% Can't Write A $500 Emergency Check

It's been more than seven years since the 'great recession' officially ended, but while Fed policies have successfully generated massive asset bubbles which have accrued solely to the benefit of America's wealthiest, the majority of American families remain as vulnerable to financial disaster as they were during the height of the crisis.

Creative Destruction Versus Government Fixes

"...in real capitalism, overcapacity and too much debt could have been prevented by periodic cleanups - what Austrian economist Joseph Schumpeter called “creative destruction." ...The problem is that, since the early 1930s, nobody ever tried to do this because the political and social impact of that scenario would have been devastating."

UBS Blames Fed For "Crisis High" Subprime Defaults; Says Auto Is Just The Beginnning

While the Fed's misguided QE and interest rate policies have done a masterful job of creating asset bubbles around the world over the past several years, they've done precious little to actually stimulate economic or wage growth, in real terms...which is why UBS says that subprime defaults on everything from auto loans to student loans are about to get a whole lot worse.