Commodity Trade Mantra

Posts Tagged ‘Borrowing’

The World’s Largest Subprime Debtor: The US Government

Six years ago financial institutions were demonized as subprime borrowers who could not repay their loans. If the federal government turns out to be just another subprime debtor, we should expect the blame to be placed on the Federal Reserve for fostering such a situation and allowing it to persist for so long.

How Economies Collapse: Systemic Friction and Debt Are Self-Liquidating

Paying for unproductive friction with borrowed money has generated the illusion that piling up debt is risk-free as long as interest rates are low and the government backstops all the debt. The final illusion is that there is no mechanism to brake the expansion of debt: that the “solution” to rising interest costs is to borrow more money.

Is This What a Credit Bubble Looks Like?

There’s been some buzz recently about a pick-up in business lending. Unlike some pundits, though, we’re not convinced that a surge in business credit is such a good thing. Corporations are already borrowing at a pace that’s only before been seen near cyclical peaks, especially as this pace never lasts long.

follow us

markets snapshot


Market Quotes are powered by Investing.com India

live commodity prices


Commodities are powered by Investing.com India

our latest tweets

follow us on facebook