Saturday, June 16, 2012

Tim Duy — Measures of Financial Stress

Fed charts not showing much financial stress in the US. The financial stress is now centered in the EZ.

Read it at Tim Duy's Fed Watch
Measures of Financial Stress
by Tim Duy

I'm still not sanguine about the level of financial stress in the US. Private debt is still way too high and incomes are not keeping up. While we may be experiencing a breathing spell, I would not say we are out of the deep water yet by a long shot. The continuing pile up of student debt is especially worrisome for the future, both financially and economically. Again, "the rent is too damn high."

1 comment:

Clonal said...

The suicide rates at Universities are going up.

Failure of young people is no longer an option. This is no longer the country, where one could fail, pick yourself up and start again.

Let us take for example what happens to a young college student -- He/She has to go into debt to get a university education. However, if you fail, or change your mind, you are left with an untenable debt, and continued college education becomes an impossibility. Almost all college education today requires that you go into debt - unless of course if you are a scion of the wealthy. However, if you fail or change your mind, you will no longer be able to go to college, for you will no longer be credit worthy, or your debt burden will become even more onerous.

What has to be relized is that all education is a PUBLIC good, and not a private good, (even though it appears to be so from an individual's standpoint.) Education enables each member of a society to reach for their full potential. An uneducated populace, is detrimental to the entire society. This is the reason that education has to be free, and paid for from the PUBLIC purse.