As the crisis nears,
debt growth slows, and spreads widen a little.
This begs the following question: how fast can personal consumption grow if new
debt growth slows or bears a higher interest burden or credit losses escalate?
This process leads to sharply rising corporate profits initially, and such a profit rise creates a stock market bubble, which eventually crashes because one day
debt growth slows down.
«While China's total
debt growth slowed notably in 2017 with a drop in the non-financial corporate debt - to - GDP ratio largely offset by rising household and financial sector debt,» the group said.
Not exact matches
In 2010, Shilling penned The Age of Deleveraging: Investment Strategies for a Decade of
Slow Growth and Deflation, in which he predicted savings levels would increase and
debt levels would fall in the lead - up to 2020.
Also, while consumer
debt is falling and corporate
debt is not yet at crisis levels, keep in mind that government
debt has skyrocketed — ironically, as a response to
slow growth in the global economic system.
The result is Canada is at «some risk» of a balance sheet recession — a period of
slow growth or decline caused by consumers saving and paying down
debt rather than spending.
There's no new theme to it, just more riffs on the old one of a self - reinforcing spiral of
slower growth in China crushing the economies of its raw material suppliers, while an appreciating dollar makes it ever harder for emerging market companies and governments to repay the
debts they gleefully took on when the Federal Reserve was giving away dollars for free.
Though it initially
slowed our
growth down, by having low
debt we never put the company at financial risk and built a strong foundation we can now leverage.»
Burgeoning levels of student loan
debt could
slow down economic
growth over time, Federal Reserve Chairman Jerome Powell said Thursday.
But the country's GDP
growth will
slow to 6.4 percent in 2018 and 6.3 percent in 2019 due to monetary policy changes and the government's efforts to curtail credit and
debt, it added.
Some other countries are much more likely to have trouble servicing their
debt as global
growth continues to
slow.
Enthusiasm for auto
debt comes at a time when aggregate
growth of mortgages, credit cards, lines of credit and other forms of borrowing has
slowed.
Then there is the euro area
debt crisis,
slower growth in the economy, lawsuits over foreclosure practices, and impending adjustments to capital - reserve requirements.
But if our net worth takes a hit, we'll stop spending to save and pay down
debt, and economic
growth will
slow.
Is it hereafter condemned to
slow growth and unsustainable boomer - driven
debt because the government can't pass sensible reforms?
After both previous major crises — when private and public
debt levels were relatively high —
slower debt growth, selective
debt re-structuring and a long period of reflation have been the solution.
Basically what this means is that under certain kinds conditions or balance sheet structures, an adverse shock, or
slowing growth, causes an explosion in contingent liabilities, most often through the banking system, and it is this explosion in contingent liabilities that creates the
debt problem for the country.
On the one hand, it may be that postponing a rapid resolution protects us from the most damaging consequences of a crisis, when
slower growth and a rising
debt burden reinforce each other, while giving us time to rebalance less painfully — the Great depression in the US showed us how damaging the process can be.
China's biggest lenders are in the midst of a revival, posting faster profit
growth and generally healthier net interest margins after years of rising bad
debt as economic
growth slowed down.
But an academic study by Thomas Herndon, Michael Ash and Robert Pollin of the University of Massachusetts debunked it — turns out the profs had it backward, and that
slower growth leads to more
debt.
Their studies were the basis of much of the austerity movement in Europe and the US, based on their claim that
debt - to - GDP ratios over 90 % are linked to much
slower economic
growth.
Rising
debt will keep
slowing the country's
growth, according to Ruchir Sharma, head of emerging markets at Morgan Stanley Investment Management.
While these may at first seem unrelated, in fact financial market disruptions are tightly tied into the self - reinforcing processes of rising
debt, capital flight and
slowing growth that recent reforms were supposed to untangle and address — and for which they have clearly failed.
While this is a solid approach for high interest
debt, paying off low interest student loan
debt could significantly
slow your portfolio's
growth.
... Even if [China's]
growth is
slowed from double digits down to 4 or 5 per cent, they would still be absorbing that
debt a lot faster the US could.»
In the interim, Birchbox had to turn to venture
debt in 2015, which hung over the company as revenue
growth slowed and customer - acquisition costs soared.
The inefficiency of the state sector explains
slow growth and high levels of
debt in China.
The PBO identified four key downside risks to the private sector forecast: global
growth, especially in the U.S. could be
slower than anticipated; the appreciation of the Canadian dollar could adversely affect exports; sovereign
debt issues in Europe could restrain recovery there and put upward pressure on global interest rates; and the high level of household
debt in Canada could restrain domestic demand.
Eventually China's decade - long binge on
debt will cause some serious indigestion that could
slow global economic
growth.
Europe's
debt crisis has triggered fiscal tightening that economists fear will
slow the region's economic
growth, in turn
slowing imports from Asia and other countries and subsequently the pace of global
growth.
The sequester is actually beneficial since it will slightly
slow the
growth of the deficit and our national
debt.
As China's
growth continues to
slow and as its
debt problems become obvious to even the most bullish, the stopped clock analogy is working overtime.
The speed with which China's GDP
growth slows in 2013 will tell us a lot about how determined Beijing is to rebalance the economy in such a way that
growth is driven more by higher household income and consumption and less by investment funded by rising government and government - related
debt.
It is difficult to model the many ways credit intensivity of
growth can change, but if we simply assume that there is no improvement except as
growth slows, so that the ratio between credit
growth and GDP
growth stays constant, the table below shows
debt levels at the end of ten years at different GDP
growth rates:
This has larger implications when coupled with
slow wage
growth, high home prices, and mounting student
debt.
Indeed, tax reform that
slows economic
growth by adding too much to
debt can actually cost more once economic effects are incorporated.
The new structure will show whether he is doing enough to tackle
slow growth, high
debt, and a questionable content strategy.
With
debt already higher as a share of Gross Domestic Product (GDP) than at any time other than the aftermath of World War II, this new
debt is likely to
slow economic
growth and hasten the country's fiscal deterioration.
Why is the market going up with unemployment so high, consumer
debt outrageous, an environment where taxes must go higher, energy 5xs the norm, housing still depressed, access to credit stunted, expensive war expenditures, the Greece failure, a weak dollar, and
slow economic
growth?
Can the Chinese government implement its new,
slower growth, pro-environment policies without exposing extraordinary levels of
debt to default?
«With the European
debt crisis spreading and the global economy recovering at a
slower than expected pace, we expect China's trade situation in the second half will become more severe and we are facing more pressure to meet the annual target for trade
growth,» Shen added.
His regime had wrecked the French economy with
slow growth and too much
debt.
The US is in for a long and disruptive period of
slow economic
growth, high unemployment and rising
debt.
While the economy is growing, the bad
debt won't be so apparent, but it certainly will be when the economic
growth slows.
At the same time, demographic shifts,
debt accumulation and productivity plateaus have contributed to
slow growth, policy - driven variables that have exacerbated the headwinds.
Despite this, many observers expected tapering to start in September 2013, and the fact it didn't was blamed on weak economic data and the fear of
growth being
slowed by the oncoming government shutdown and
debt ceiling discussion.
By CBO's estimate, making Social Security solvent would substantially
slow debt growth, leading it to rise to 111 percent of GDP after three decades rather than 150 percent.
And there's no sign of the
growth of
debt slowing anytime soon.
At worst, CBO finds the cost of a tax cut would increase as higher
debt slowed economic
growth.