Canadian households were already stretched before the holidays, with the pace of
debt growth far outstripping wages over the last decade or so.
Not exact matches
In its last assessment, S&P said that Portugal's outlook was stable, «balancing our expectation of
further budgetary consolidation and likely receding banking sector risks over the next two years against the risks of a weakening external
growth environment and vulnerabilities related to high private - and public - sector
debt.»
Some, like Veritas analyst Dimitry Khmelnitsky, suggest that Valeant's
debt levels and cash flows are unsustainable without near - constant acquisitions: «Valeant's organic revenue
growth disclosures thus
far have been piecemeal, inconsistent and confusing,» wrote Khmelnitsky in a note from 2012.
The risks lie in the vast differences in macro-economic fundamentals in countries such as Germany and Greece, which could not be
further apart in terms of rates of
growth,
debt or unemployment.
«The marginal cost of that
debt is
far above nominal GDP
growth in respective nations.
Without a massive transfer of wealth from the state sector to the household sector it will be impossible, I would argue, for GDP
growth rates of anything above 3 - 4 % — and perhaps even less — to occur without a
further unsustainable increase in
debt, whether that increase occurs inside or outside the formal banking system and whether or not discipline has been imposed on borrowers.
Third, in a world where interest rates over horizons of more than a generation are
far lower than even pessimistic projections of
growth, traditional thinking about
debt sustainability needs to be discarded.
«The bank expects trend
growth in household credit to moderate
further, with the
debt - to - income ratio stabilizing near current levels.»
Everyone agreed that
debt in China is still growing
far too quickly relative to the country's
debt - servicing capacity, but the pace of credit
growth seems to have declined in 2017, even as real GDP
growth held steady and, more importantly, nominal GDP
growth increased.
Further, the Trump Administration and many members of Congress have talked about using economic
growth to address our rising national
debt.
In any financial situation where interest rates
far exceed
growth rates,
debt problems spiral out of control.
The
debt - servicing ratio on household borrowing has now surpassed its late 1980s peak, and is set to rise
further over the first half of 2004, given current rates of household credit
growth.
So
far, September 2016 has been touted as the taper date for QE, but Soc Gen think the ECB may have to venture into buying lower - rated government
debt and even corporate
debt if
growth and prices continue to disappoint.
Through higher savings, U.S. households have materially paid down
debt relative to their disposable incomes over the past decade, and this creates
further opportunity for
growth in consumer spending.
Over the past year, the strong pace of
debt accumulation has outstripped the
growth in the household sector's assets, despite
further significant gains in housing wealth (Table 9).
For a long time, we've known about the issues that would inflate the entitlements — such as the prior - mentioned demographic problems — but there is an increasing likelihood that new federal programs with expenditure increases will
further accelerate the
growth in federal
debt.
The move was widely seen as a
further sign of the shifting priorities of the Chinese government, with more of a focus on stability and risk management, rather than on the creation of additional
debt in order to sustain previous levels of
growth.
China's economic
growth target for 2017 was announced by the country's leadership as around 6.5 %, a move widely seen as a
further focus on stability and risk management, rather than on the creation of additional
debt in order to sustain previous levels of
growth.
He is likely to speed up work on his key initiatives:
further cleaning up bloated state - owned enterprises and delicately cutting down on the country's reliance on
debt to boost
growth.
«The data so
far this year raise a concern that, rather than reducing the public
debt, the deficit reduction plans could be having the opposite effect because higher tax rates and austerity measures are causing economic
growth to be weaker than expected.»
This
further distorted financial markets, increased local government
debt, improved infrastructure rather than skills and delayed the
growth of private domestic consumption, which everyone agrees must replace investment and exports as the driver of Chinese
growth.
But ultimately, China needs to find more sustainable engines of
growth beyond
further debt accumulation by unproductive national and local SOEs, or accept slower
growth.
So
far, real S&P 500
growth has managed to hold up since margin
debt peaked a little more than a year ago.
The Howard Hughes Company (HHC): I wasn't really following the General
Growth Property bankruptcy saga primarily because I don't do distressed
debt but also because it seemed
far too complex a situation and many better minds that mine were focused on it.
They enjoy some key advantages — younger / faster growing populations (with
far lower entitlements), labour costs that are a fraction of developed market costs, control of a major portion of the world's natural resources, low / stable
debt ratios, a 50 % share of world GDP, and GDP
growth expected to be twice that of developed markets.
Then again, personally, the
debt &
growth outlooks for the Western world actually keep me up at night
far more
The annualized
growth rate of that
debt far exceeds the
growth rate of profitability or sales.
Without strong US job
growth in this
growth cycle and driven by rising US consumer
debt obligations and a US housing value bubble, the US then lead the world into another financial or «credit crunch» crisis that was
far worse than the dot com crash.
Go too
far and we get a recession, no economic
growth, just lots of new government
debt.
Possibly, but I'd prefer to err on the side of caution — I think it's
far more likely they'll be tempted to buy some
growth with the cash, rather than apply it to
debt pay - down.
Further economic
growth in veterinary medicine is necessary to alleviate crippling issues, including repayment of rising student
debt for both veterinarians and VTs, that deter qualified individuals from entering or staying in a career in veterinary medicine.
'' Gordon contends that the nation's productivity
growth will be
further held back by the headwinds of rising inequality, stagnating education, an aging population, and the rising
debt of college students and the federal government, and that we must find new solutions.
Perhaps you want your company to grow
further through mergers and acquisitions and you want to finance them, or your organic
growth, with equity or
debt capital.
We have no
debt, over $ 2 million cash, and a $ 3 million bank line of credit to fund
further growth.
We continue to be management owned and controlled (with no outside institutional capital), with no
debt, $ 3 million cash, and a $ 5 million receivables - backed line of credit to fund
further growth.
The exception would be if the housing market rebounds and it leads to acceleration in
debt growth, in which case the Bank of Canada could be forced to raise interest rates sooner or the government could tighten mortgage lending rules
further.