Household and Corporate Debt in America Reach All-Time Highs … Towards a Deep Recession?


Household debt is at an all-time high.  The Federal Reserve Bank of New York explains:

Total household debt increased by $219 billion (1.6%) to $13.51 trillion in the third quarter of 2018. It was the 17th consecutive quarter with an increase and the total is now $837 billion higher than the previous peak of $12.68 trillion in the third quarter of 2008.

CNBC notes that corporate debt has risen from $4.9 trillion in 2007 to nearly $9.1 trillion in 2018. CNBC also points out: “The cash-to-debt ration for corporate borrowers fell to 12 percent in 2017, the lowest ever.”

What does this mean for the economy?

While mainstream economists think that private debt has no effect on the economy, smarter economists – like Steve Keen and analysts at the National Bureau of Economic Research – point out that high levels of private debt are the MAIN predictor of deep recessions and depressions.



Note to readers: please click the share buttons above. Forward this article to your email lists. Crosspost on your blog site, internet forums. etc.

Articles by: Washington's Blog

Disclaimer: The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible for any inaccurate or incorrect statement in this article. The Centre of Research on Globalization grants permission to cross-post Global Research articles on community internet sites as long the source and copyright are acknowledged together with a hyperlink to the original Global Research article. For publication of Global Research articles in print or other forms including commercial internet sites, contact: [email protected] contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.

For media inquiries: [email protected]