36 - Debt and Market Cycles

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All the current economic indicators are pointing towards a market "correction", better known as a downturn, so hold on tight! In this podcast we talk about how to see these cycles coming, protect yourself from their negative effects and how to best take advantage of them.

All the current economic indicators are pointing towards a market “correction”, better known as a downturn, so hold on tight!  In this podcast we talk about how to see these cycles coming, protect yourself from their negative effects and how to best take advantage of them.

In this episode:

  • Follow up to last week [1:00]

  • Why productivity drives economic growth [5:00]

  • What happened with the Great Recession [10:45]

  • How much consumer debt is there? [13:00]

  • Why corporate debt and what type it is matters [15:00]

  • How much is the federal government debt? [16:45]

  • How about state governments? [20:30]

  • Have we really had GDP growth for the past 11 years? [24:30]

  • What would you do if everyone owed you? [34:30]

  • What would you do if they had more debts than assets? [38:00]

  • Would you lend to business that had no profits? [46:00]

  • The down cycle of debt [47:30]

  • Using WeWork and Uber as an example [50:30]

  • One big secret of the wealthy [59:00]

If you want to watch this instead of listen, go here to watch on YouTube.

Resources:

AnnaMaria Andriotis and Ben Eisen, The Wall Street Journal. A $45,000 Loan for a $27,000 Ride: More Borrowers Are Going Underwater on Car Loans

Federal Reserve Bank of New York, Center for Microeconomic Data. Household Debt and Credit Report

Akrur Barua and Dr. Patricia Buckley, Deloitte Insights. Rising Corporate Debt: Should We Worry?

Truth in Accounting. Our Debt Clock

Ariel Santos-Alborna, Seeking Alpha. The Corporate Debt Bubble

Rachael Fauss & John Kaehny, Gotham Gazette. The MTA is Fiscally Exhausted

United States Department of Agriculture Economic Research Service. Ag and Food Sectors and the Economy