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October 25, 2017 | Americans Too: IMF Warns Record US Household Debt is ‘Economic Trap’
Danielle Park
Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com
The International Monetary Fund devotes two chapters of its latest Global Financial Stability Report to the issue of household debt and points out:
- high household debt levels deepen and prolong economic recessions.
- US household debt is back at pre-Great recession levels hitting $12.84 trillion in the second quarter of 2017.The report offers this flowchart of the loops between debt, cash flow, demand and the economic cycle. See: Americans have more debt than ever–and it’s creating an economic trap.
Pretty common-sense stuff. Yet, widely ignored by the monetary policy of central banks everywhere.
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Danielle Park October 25th, 2017
Posted In: Juggling Dynamite
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