. . . when the rest of us are doing precisely and exactly the same thing?
Total household debt rose by $193 billion to an all-time high of $13.15 trillion at year-end 2017 from the previous quarter, according to the Federal Reserve Bank of New York's Center for Microeconomic Data report released Tuesday ... The report said it was fifth consecutive year of annual household debt growth.
There's more at the link.
Corporate America is doing likewise. The latest casualty is Remington Arms, which was "taken private" by Cerberus some years ago in a leveraged buyout. Cerberus has loaded the company with so much debt ($950 million) that it's now driven it into the ground. Remington is looking to shed about $700 million of that debt in bankruptcy proceedings.
If we load up the country as a whole, and our companies, and ourselves, with debt . . . sooner or later that debt has to be repaid. If we don't or can't repay it, we go bankrupt and our assets are either confiscated, or become worthless - as does our reputation (what's left of it) for fiscal responsibility.
Debt is killing us. There's no other way to describe it. What's more, we can't blame our politicians for adding to the national debt when we, as consumers, are doing precisely the same thing with our own debt. Pot, meet kettle. Kettle, pot.
Peter
Umnnhhh....
ReplyDeleteCerberus and its like-kind firms bleed their acquisitions to death with "management fees" and other legitimate thefts. You may have noticed that Romney's outfit does the same. To call them vultures is really an understatement.
You will notice that Cerberus' individual investors will NOT be affected by this; THEY will not declare BK. That's why those outfits are universally reviled.
precisely why i could not vote for the romney vulture.
ReplyDeleteour terrible debt is medically induced.
Remington recently closed one facility in KY and moved much of its operations to Huntsville AL with the understanding they would eventually add 2,000 new jobs to the area. They just informed local officials that while there was no danger of them closing the new plant it might be some time before they met their employment goals.
ReplyDeleteThey filed chapter 13 which is a restructure bankruptcy, not the infamous chapter 7 where assets are liquidated to pay of creditors. Still, seems as though several poor management decisions as well as a failure to allow for a temporary downturn in market demand are what put them in this position in the first place.
Personally, I was raised by grandparents who were business folks through both World Wars and the Great Depression. As a result I own my home free and clear, and have multiple revenue streams each capable of supporting my minimal monthly expenses.