Loading ...Only thing growing in this world is the population of poor people. They own nothing and consume little. So what could possibly be the source of the stellar growth of all that fine assets? Maybe printed money? Handed over from central banks to commercial banks, public debt, owed by taxpayers and foreign nations. Looks to me like a real sound foundation for endless growth of multiples in stocks. No creditor on this earth will ever pay back debt or even interest, unless it turns negative. Global economy is a single giant nonperforming loan. And right now the wave is building up on the shores of the US financial markets.
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Global debt has surged since 2008, to levels that should frighten any sane investor because debt has always had consequences. Much of the massive debt load hanging above our heads in 2008 has not receded or gone away it has merely been transferred to the public sector where those in charge of such things feel it is more benign.
A series of off-book and backdoor transactions by those in charge has transferred the burden of loss from the banks onto the shoulders of the people, however, shifting the liability from one sector to another does not alleviate the problem. The article below argues much of this debt will end in default as history shows it always does.