Get Ready For A Summer Of Crisis After Crisis
PNW - Ignoring long-term problems can work for a while, but eventually they catch up with you. Over the years, I have written many articles about alarming long-term trends in our society that desperately needed to be addressed. Of course the vast majority of those long-term trends never got much attention, because our political system tends to reward politicians that focus on short-term issues.
As a result, many of the long-term trends that I have written about previously have now gotten to a point where they have started to become very serious short-term problems. In this article, I would like to share 9 examples of this with you.
#1 I have been warning about exploding debt levels for as long as I have been writing about the economy. Most people know that the U.S. national debt has now crossed the 28 trillion dollar threshold, but hardly anyone is talking about the explosion of corporate debt that we have been witnessing in recent months. According to the Federal Reserve, total corporate debt in the United States is now up to a whopping 11.2 trillion dollars...
Before the pandemic, U.S. companies were borrowing heavily at low interest rates. When Covid-19 lockdowns triggered a recession, they didn't pull back. They borrowed even more and soon paid even less.
After a brief spike, interest rates on corporate debt plummeted to their lowest level on record, bringing a surge in new bonds. Nonfinancial companies issued $1.7 trillion of bonds in the U.S. last year, nearly $600 billion more than the previous high, according to Dealogic. By the end of March, their total debt stood at $11.2 trillion, according to the Federal Reserve, about half the size of the U.S. economy.
#2 Needless to say, this level of corporate debt is not even close to sustainable, and we are starting to see a lot of prominent names go bankrupt. In fact, one of the largest mall owners in the entire country officially filed for bankruptcy on Sunday...
Washington Prime Group, a major mall owner of more than 100 locations across the United States, filed for bankruptcy, citing pandemic-related shutdowns.
The Columbus, Ohio-based company filed for....READ MORE
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