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re: There are some major issues lurking in the US financial markets

Posted on 10/25/18 at 8:54 pm to
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 10/25/18 at 8:54 pm to
quote:

5. Macro Debt: US Gross Federal Debt as a percentage of GDP averaged 61.7 percent from 1940-2017. Right now it is 105.4 percent.
Micro Debt: ATT lists net debt at 180 billion.
Probably not great when 80 billion of that is current and they have 50 billion in cash.


With rates still as low as they are this doesn't seem to be a problem. The spread between long term inflation rate vs. long term debt is quite small, so it makes perfect sense to borrow as much as possible for 30 years.
Posted by zatetic
Member since Nov 2015
5677 posts
Posted on 10/26/18 at 8:47 am to
How long can the U.S. service it's debt with rising rates is real question. Every eight years the debt seems to double. We are reaching a point that debt becomes unserviceable without severe consequences. This isn't new news, but even Trump pointed it out too

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