Record Inflation of Debt Assets

Total household debt is now a record $12.73 trillion.

The total debt liability is an asset on the books of banks, until it is swapped. Suddenly, there is the realization that the assets are actually a liability and markets move to swap it. Credit-Default Swaps (CDOs) rise and, just like in 08-09, credit markets freeze up, resulting in a liquidity crisis despite financial markets being awash with liquidity at record levels.


About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
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