A New Disturbance in the Force

Banks are not your buddy. They are a lender of money and they want it back with as much interest and fees as possible. They do so under the VARY watchful eye or Washington and oftentimes with the prodding of Washington.

That’s been pretty standard across all industries though. For the business to push all responsibility to the consumer, while denying any contribution to problems.

From Snake oil and Caveat emptor.
Don’t be a litter bug campaign. Designed by companies to blame consumers for plastic trash vs. the fact they discontinued glass bottles in favor of cheaper single use plastic.

This will be the same when the inevitable happens. “It’s the consumers responsibility to manage debt and pay it back. It’s not our fault we issued like there was no tomorrow”

Do you think the consumer doesn’t have any responsibility? Or do you think “they lent me money, I spent it and now they want it back. Can you believe they did that to me?”

What ? I’m not stopping anybody from clicking, or clucking in your case.

Just merely pointing out what you gloss over in the retelling of the sky is falling
story. If that annoys you, when I use your source, and show that …well just stay annoyed,
cluck-cluck :slight_smile:

My initial take is NO, thats too much intrusion. OTOH, maybe you do need to tweak the regulations
in the already regulated banking industry some. But be aware of the law of unintended consequences.

Yes that’s exactly what I said, if I wanted someone to put words in my mouth I’d ask Chris for his thoughts. No it takes two to tango, if the bank issues debt at an unsustainable rate they do get to complain about not getting paid back, but I can also say maybe you shouldn’t have put yourself in that position in the first place.

Banks like all major companies are like spoiled children. They’ve never done anything wrong, it’s always someone else’s fault things have gone bad, and why should they have to clean anything up.

There are all kinds of predatory lending laws and the banks are highly regulated and examined by the federal government. They know about it and encourage it.

There are no virgins in this story.

This is the classic ‘sh*t’ journalism of today. Financial expert vs ticktocker. I’d LOL but its just pathetic.

He’s right. Unemployment remains low so people are getting checks.

IMHO, if the US would change its healthcare system to provide universal coverage for all ages, not just retirees through medicare, much of the stress would be taken off its workforce.

1 Like

Howard Marks on Debt

https://www.oaktreecapital.com/insights/memo/the-impact-of-debt

1 Like

little boy, dike, leaks comes to mind…

My kid is going to Japan for the summer, looks like it’ll be a bargain!

Nope. Japan may be the most expensive place on Earth.

Big picture view of M2 money supply coming back.

But might add, Japan has been the poster child for country with most out of whack
debt to gdp for a long time.

Japan recorded a Government Debt to GDP of 263.90 percent of the country’s Gross Domestic Product in 2022. Government Debt to GDP in Japan averaged 146.28 percent of GDP from 1980 until 2022, reaching an all time high of 263.90 percent of GDP in 2022 and a record low of 50.60 percent of GDP in 1980. source: Ministry of Finance, Japan

M1 says cash on hand isn’t

Be better graph if you had an extended timeline on x axis. But seems to mirror M2 very well,
like what was in the article you posted and the extended M2 I provided.

One dollar equals about 155 yen now vs the longer term
rate of one dollar equal ~107 yen

1 Like

With my luck, it’ll probably drop back to 107 when he gets there.