Sentences with phrase «debt levels relative»

High nominal debt levels relative to GDP create their own crisis.)

What isn't hard is looking at the overall debt levels relative to GDP, and realizing that we have only rationalized a part of them.

So just how are mortgage delinquency rates so incredibly low at a time when household debt levels relative to incomes have never been higher?

In doing so, the Fed pushed debt levels relative to GDP far higher than they were during the Great Depression.

Rather, weak GDP predictably results in revenue shortfalls and the need for counter-cyclical spending, all of which causes a disproportionate jump in debt levels relative to GDP.

Household debt levels relative to incomes are now well above where they were in the U.S. at the peak of that country's housing bubble.

So just how are mortgage delinquency rates so incredibly low at a time when household debt levels relative to incomes have never been higher?

Not exact matches

If current laws remained generally unchanged, the United States would face steadily increasing federal budget deficits and debt over the next 30 years — reaching the highest level of debt relative to GDP ever experienced in this country.

This does not refer to debt per se, but rather, the level of fixed expense relative to total sales.

When this happens and as debt levels rise relative to debt servicing capacity, at some point the major stakeholders — including businesses, creditors, household savers, workers and so on — became uncertain enough about how this gap will be allocated that they take steps to protect themselves from this uncertainty.

Unfortunately, corporate debt relative to U.S. GDP has now returned to prerecession levels, a risk made even riskier by rising interest rates.

The worse the debt level gets, the faster debt rises relative to GDP.

The latest forecast of the University of Ottawa's Institute of Fiscal Studies and Democracy shows that rising interest rates threaten Morneau's promise to contain Canada's debt at current levels relative to gross domestic product.

Instead, duplication of credit between deficit and surplus countries has kept the system far from equilibrium while sending global relative debt to record levels.

«If I find fault with a company's balance sheet, especially with the level of debt relative to the assets or cash flows, I will abort our analysis, unless there is a compelling reason to do otherwise» Ed Wachenheim

Copeland also noted the fact that families with heads ages 75 or older whose debt payments are excessive relative to their incomes is near its highest levels since 1992.

According to the Employee Benefit Research Institute, «the percentage of families whose debt payments are excessive relative to their incomes are at or near their highest levels since 1992.»

As I discuss in Debelle (2004), debt - to - income ratios are not necessarily the appropriate benchmark to assess relative debt levels as they deflate a stock by a flow.

Our analysis suggests this would be a more sustainable level of debt for the commonwealth to carry relative to its potential gross national product (GNP).

It has been conscious that a balance needs to be struck between the benefits of monetary stimulus and the medium - term risks associated with rising levels of debt relative to our incomes.

That is just a little over 4 years, and we can expect a continuation of deleveraging for many years to come - we have a long way to go in order to get back to the levels of household debt relative to GDP or Personal Disposable Income (PDI).

The Macri government has begun borrowing again from international and Wall - Street banks, but the level of external debt is not large relative to the size of the economy.

Second, the published data show a level of interest expenses in the recent past which seems too low relative to what is implied by the level of debt and prevailing interest rates, both of which are fairly readily observable.

Further, using the constituents of the S&P 500 Bond Index, measures of debt relative to cash flows are at levels not seen since 2008 (see Exhibit 2).

We also try to maintain a reasonable level of credit card debt, relative to our card limits.

I'm not saying penalize securitization, but put it on a level playing field so that the inherent leverage involved in securitization gets a higher capital charge relative to straight debt of a similar risk class.

Begin inflating the currency to force up the value of collateral relative to nominal debt levels

In a country where consumers have grown accustomed to low rates, and where households are burdened with record levels of debt relative to income, this kind of change is worth noting.

I've suggested it before, but perhaps monetary policy should not focus on (at least solely) price inflation or unemployment, but on the level of total debt relative to GDP.

Household debt levels are at record highs relative to income and interest rates are at record lows.

On the other hand, if too much dept is accumulated relative to income levels, economic activity may decrease in order to ensure the return of debts, which in turn might lower the currency price.

We found that for many PSLF - eligible professions, the debt levels at which this occurs are quite low relative to the amount graduate students borrow and the total cost of attendance for their degrees.

The EBRI report notes that «the percentages of families whose debt payments are excessive relative to their incomes are at or near their highest levels since 1992.

Similarly, a study from 2013 conducted at Northwestern University found that those who had high debt relative to household assets, reported higher levels of stress, depression, and poor self - reported general health.

Because of the increasing level of cash flows necessary to service the debt relative to the economic yield on the assets, it doesn't take much fluctuation to make the most marginal borrowers question whether they can hold onto the assets.

Those periodic special dividends are feasible because of the firm's immaculate balance sheet, which has almost no debt, relatively high cash levels (relative to the size of the company and its acquisitions), and a high current ratio (i.e. the company's short - term assets cover its short - term liabilities by more than three-fold, thus protecting it from unexpected negative financial strains, such as during recessions when demand from restaurants can lead to declining sales, earnings, and cash flow).

«That seasonal consistency is encouraging... With both delinquencies and debt levels remaining quite low relative to historical norms, we are confident in the continued stability of credit card usage patterns in the short term.»