Thank you for another clear presentation of the facts vs. the headlines. I am always interested in these examples of "How the News Makes Us Dumb" . Please continue making videos along this line. (BTW, for those who don't know, I am referencing the title of a book by history professor John Sommerville. I highly recommend reading it. It is a short book and full of great insights. He squarely puts the blame for our media problems on the news consumer, thus the "Us" of the title.)
Very rough #'s: Private Credit ($1.5T) + Junk Bonds ($1.5T) + Leveraged Loans ($1.5T) = $4.5 trillion of non-traditional, lower credit business debt. Corporate debt seems to be increasingly bifurcated between high and low credit borrowers, and the low credit is outside of the bank system and direct supervision. Household and business leverage is falling, so does that mean that the US economy is reliant on continued Federal government deficits? Or is it a chicken or egg problem, where if there wasn't a Federal deficit, then household and business debt would rise?
very great and educational video, i wonder if can talk about the current risk of treasury long bonds, is it now a good time to invest in some treasury bonds or it might get hammered again due to future risk of inflation? thank you
I’d be interested to know how much wealth would be transferred to the public if wealth (capital gains) was taxed at a higher rate than wages, say rates that were in effect in the 1960s, and how this compares to estimates of the cost of providing universal health care and child care. I very much appreciate these presentations.
I'd be interested in your opinion on the apparent increase of "Zombie Companies" - companies with a lot of cheap debt, that will face problems paying back even the interest on their loans (never mind the principal)
As a result of these concerns the share prices of high quality Business Development Companies (BDCs) is irrationally low and the yields are thus irrationally high. And in the REIT sector there are also dramatic concerns, especially in the office sector, leading to nice yields.
Thank you for another clear presentation of the facts vs. the headlines. I am always interested in these examples of "How the News Makes Us Dumb" . Please continue making videos along this line. (BTW, for those who don't know, I am referencing the title of a book by history professor John Sommerville. I highly recommend reading it. It is a short book and full of great insights. He squarely puts the blame for our media problems on the news consumer, thus the "Us" of the title.)
Very rough #'s: Private Credit ($1.5T) + Junk Bonds ($1.5T) + Leveraged Loans ($1.5T) = $4.5 trillion of non-traditional, lower credit business debt. Corporate debt seems to be increasingly bifurcated between high and low credit borrowers, and the low credit is outside of the bank system and direct supervision.
Household and business leverage is falling, so does that mean that the US economy is reliant on continued Federal government deficits? Or is it a chicken or egg problem, where if there wasn't a Federal deficit, then household and business debt would rise?
very great and educational video, i wonder if can talk about the current risk of treasury long bonds, is it now a good time to invest in some treasury bonds or it might get hammered again due to future risk of inflation? thank you
I’d be interested to know how much wealth would be transferred to the public if wealth (capital gains) was taxed at a higher rate than wages, say rates that were in effect in the 1960s, and how this compares to estimates of the cost of providing universal health care and child care.
I very much appreciate these presentations.
Thanks for the suggestion!
I'd be interested in your opinion on the apparent increase of "Zombie Companies" - companies with a lot of cheap debt, that will face problems paying back even the interest on their loans (never mind the principal)
Thanks for the suggestion!
As a result of these concerns the share prices of high quality Business Development Companies (BDCs) is irrationally low and the yields are thus irrationally high. And in the REIT sector there are also dramatic concerns, especially in the office sector, leading to nice yields.