The next financial bubble is in sight. Are you ready?

2016-10-14T15:59:04-04:00

The Fed in their last meeting raised concern about a metric that measures financial stability, and it's not good. This implies that there is a bubble looming that is created by artificial cheap debt in the market driving borrowing to new highs. Real or scare tactic?

http://www.bloomberg.com/news/articles/2016-10-13/this-financial-stability-metric-has-the-fed-s-attention-chart

This Financial-Stability Metric Has the Fed’s Attention

The ratio of nonfinancial business debt to gross domestic product rose in the second quarter back to levels only seen during the 2008-09 recession.

Response by ENS Private RallyPoint Member made Oct 14 at 2016 4:20 PM

2016-10-14T16:20:46-04:00

This is definitely a concern, but it is a factor that people should always take into consideration. The markets are rarely stable.. Those investing in higher risk markets should pay more attention to their investments. Those with a safer, more stable investment profile don't have to worry much. I wonder what the election and new face in office will do to the market.

Response by SFC George Smith made Oct 14 at 2016 10:22 PM

2016-10-14T22:22:46-04:00

the question is is going to break like the last one did...

Response by LTC John Shaw made Oct 14 at 2016 10:42 PM

2016-10-14T22:42:59-04:00

We have record federal and business debt. Consumer debt is close to records as well. I don't believe this will end soon as we will elect leadership that will ignore the problem and pass new entitlements.
Expect to break the old records plus much more. No action will be taken until market rates are forced up but catastrophic business or government failure.

Response by Sgt Kelli Mays made Oct 15 at 2016 1:17 PM

2016-10-15T13:17:29-04:00

Sgt Jeffrey Clish Fed's have kept rates artificially low for far too long...albeit it's great for the home buyers, but in the long run, it's going to hurt the country.

Response by MSG Mitch Dowler made Oct 17 at 2016 7:44 PM

2016-10-17T19:44:28-04:00

Stock market is in a bubble and does not move by real logic anyway. For a subsequent recession there is no room to lower interest rates so the fed can only wildly print more driving inflation much faster than the wages for Obama's new service industry economy. Save yourself with long term low interest debt tied to income producing real estate.