Just last week, I was giving a speech in Pasadena, CA, to the local chapter of the California Association of Mortgage Brokers. As I interacted with the attendees, I noticed that many people seemed to be literally depressed about the current market conditions. Foreclosures, short sales, plummeting home values, and distressed home owners take their [...]
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Posted in ...On Money, Business and the Markets, tagged economy, stimulus plan, US debt, government bailout, bailout plan, stimulus package, debt, $700 billion, Fannie Mae, Freddie Mac, recession, depression, bonds, GDP, debt ratio, government intervention, mortgage, real estate, home owner, home buyer, US credit rating, Treasury, Treasury bonds, taxes, tax burden, financial bailout, financial rescue, politics, business, economics, financial markets, markets, market, financial, Congress, inflation, bankrupt, US dollar, dollar on February 12, 2009 | 2 Comments »
Many thanks to those of you who have commented on my two previous posts! The main concern that some of you have expressed is that I am calculating the US debt ratio using our total national economic output (GDP) as opposed to looking at the actual tax dollars received by the government. This is quite normal when discussing the economics and debt ratios of sovereign governments like the United States. Here’s why:
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Posted in ...On Money, Business and the Markets, tagged $700 billion, bailout plan, bankrupt, bond market, bonds, business, china, debt, debt ratio, depression, dollar, economics, economy, financial, financial bailout, financial markets, france, GDP, germany, inflation, italy, japan, mortgage, politics, real estate, recession, stimulus package, stimulus plan, tax burden, taxes, Treasury, Treasury bonds, trillion, US credit rating, US debt, US dollar on February 12, 2009 | 2 Comments »
We just established that the US has a debt ratio of approx. 48% – 84% (48% if you are optimistic, and 84% if you think home values in the United States are going to $0). How does this 48% – 84% debt ratio compare with other countries in the world?
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Posted in ...On Money, Business and the Markets, tagged $700 billion, bailout plan, bond market, bonds, business, Congress, debt, debt ratio, depression, economics, economy, Fannie Mae, financial, financial bailout, financial markets, financial rescue, Freddie Mac, GDP, government bailout, government intervention, home buyer, home owner, market, markets, mortgage, politics, real estate, recession, stimulus package, stimulus plan, tax burden, taxes, Treasury, Treasury bonds, US credit rating, US debt on February 11, 2009 | 2 Comments »
As part of the latest stimulus package, the Congress is set to authorize an expansion of the total US debt burden to a whopping $12.14 TRILLION! This staggering number includes all the provisions of the latest $789.5 billion economic stimulus plan, as well as other potential government liabilities that were part of last year’s $700 billion bailout package and the conservatorship of government sponsored mortgage giants Fannie Mae and Freddie Mac. So, the multi-trillion dollar question is: How much debt is too much?
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