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Chad Karnes

Is the Corporate Debt Bubble Popping?

 

There is a simple reason why no matter what is attempted as a remedy, the current economic recovery is not near as robust as most would expect after five years.

There is also a simple reason why household incomes, the percentage of Americans employed, earnings growth, and pretty much every other economic indicator has slowed, flat-lined, or been declining over the last decade.

The reason is this “recovery” has been entirely fueled by debt growth rather than equity growth.

Even worse, debt (NYSEARCA:JNK) has been the primary fuel for the economy now for 15 years and is resulting in a completely different reality from our economies of the past.

Back to School

In accounting 101, there is a simple equation that every student must learn.

Breaking down this equation helps explain what is really occurring in the economy and why if we continue on the current path, ... Log in or subscribe to continue reading.


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