Posts Tagged ‘record’

Leveraged Loans defined:

“…arranged by a syndicate of banks, to companies that are heavily indebted or have weak credit ratings.” -IMF

“…are effectively provided to companies already swimming in debt.” -Nomi Prins

“That was all good and well when interest rates were super low, making it easier for companies to borrow oodles of money,”

“This year, leveraged loan issuance reached an annual rate of $745 billion. That’s nearly the same as the prior record of $762 billion in 2007 before the financial crisis and just a bit less than last year’s record of $788 billion globally.”

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“Washington’s $523 billion in debt service costs this year was the highest on record. That’s more than Belgium’s entire economic output (or GDP) this year.” -Chris Lowe

“Thanks to Google, Facebook, and all the other data-gathering operations being run out of Silicon Valley, children born in the last decade will have no concept of privacy.

These companies will record, monitor, and track every single thing they do online. The word ‘privacy’ will be a meaningless term to them….

These Silicon Valley giants gather mindboggling amounts of highly personal data on their 4 billion combined users.

They then hawk it to advertisers… and even pass it on to the National Security Agency (NSA), via court-approved electronic eavesdropping programs….

Every traditional digital financial transaction you’ve ever made – credit card payments, bank transfers, even ATM withdrawals – has been tracked, stored, and monitored.”

-Chris Lowe

Debt Death

Posted: February 16, 2018 in Debt
Tags: , , , , , , ,

“Americans also have more than $1 trillion in credit card debt, and more than $1 trillion in auto loan debt—all record highs.  It’s gotten so bad, 73% of Americans die with debt.” -Porter Stansberry

 

“…the world has been binging on debt like never before.

The International Monetary Fund reported last month that total nonfinancial-sector debt has ballooned to an all-time record of $152 trillion… while the global debt-to-GDP ratio has also soared to an all-time high of 225%, up from 200% just 14 years ago.

Worse, we’re seeing record debt at the government level, the corporate level, and the consumer level (via auto and student loans, in particular). The boom in corporate borrowing is especially concerning…

U.S. companies have already borrowed $1.4 trillion this year to date, according to data firm Dealogic. This is on pace to shatter last year’s previous all-time record of $1.5 trillion.

Unfortunately, most are using this money to refinance existing loans… buy back stock and pay dividends… and finance expensive (and often questionable) mergers and acquisitions. This will do little to help the economy. But it greatly increases leverage… and risk.” -Justin Brill

Financial-research firm FactSet explains exactly what’s driving this market forward, despite all of the economic warning signs.  So far this year, 41 different companies have spent more than $1 billion buying back their own shares.  So far this year, U.S. corporations have spent a total of $166 billion on share buybacks.  That’s a 15% increase over last year… and sets a new record annual pace for share buybacks.” -Porter Stansberry