Lubas, Lauren. “Are You Ready for the Debt and Asset Bubbles to Pop?” Gold Alliance, 7 Sept. 2022, https://goldalliance.com/blog/market-insights/are-you-ready-for-the-debt-and-asset-bubbles-to-pop/.
Direct Quote: There is no telling when government and corporate debt bubbles are going to burst, but they cannot sustain themselves much longer, and there isn’t a good way to deflate them. With corporations using that debt for stock buybacks (as discussed above), a lot of the debt isn’t doing much to help the economy. It’s actually making it worse because it’s causing a stock market bubble. . . . The stock market is booming. The Fed keeps its printing presses hot and ready to go for every stimulus bill that comes along, and the government keeps adding to the deficit. We’re in the roaring twenties, and it’s probably not going to last long. All of the bubbles that are currently inflating — some of them about to burst — are making all of the other bubbles that much more fragile.
Summary/My Interpretation: Although the US economy is prosperous in the status quo, that success has come at a price. Specifically, as the US continues to aff to the federal deficit, they create a debt bubble that spans across the different economic sectors. This has been especially bad in the stock market as securities have taken cash out of circulation. Overall, experts believe that this bubble will one day burst, causing the US to enter a massive recession.
How I Plan To Use This In My Project: I hope to use this article in my project as a way of demonstrating how the US debt bubble has hurt the economy. The article does a good jog at explaining how the increasing US deficit has created a bubble in the stock market that threatens to send the economy into a recession. I hope to use this narrative to further demonstrate how the debt could harm middle class families by leading to another recession.
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