Finvestos

US is the world's largest economy. Fears of economic recession loom high over the economic giant. The US might be on the brink of a loan default crisis. We are now going to analyze the debt composition of US to understand the upcoming crisis better. Record Debt Levels USA is sitting on a record level debt of 34 trillion dollars. This level is higher than ever before. Now if we look at the data carefully, we would be able to notice that 10.1 trillion dollars debt has been pumped in the economy from 2020 - 2023. This is a  colossal increase in debt . This also means that almost 30% of the debt in US markets has been pumped in only 3 years. Even if we say that debt levels are not a concern, such  intense pumping of debt  is definitely a matter of huge concern. YOY Increase in Public Debt Due to this, Fed rates have been increased. The interplay of Fed rates and debt levels might become troublesome for an average borrower. Debt Composition Domestically held public debt Here i...

(*This article is subject to copyright. Any use of it without permission or references would not be allowed) The US economy has been toyed around with. All the distress alarms have started to ring. Let us dive deep into the US economy and find its major pitfalls. I have strong evidence to show that the US and the Global economy might be in huge danger. It was after the market crash of 2008 when  Ben Shalom Bernanke  introduced a stimulus package for economic relief in the country. He was a strong proponent of  Keynesian economics, which talks about how injecting money into the market helps to stimulate an economy. If there is more money in the economy, more the people will spend, more will be the economic growth . This money is usually injected into the markets via lowering the Fed rates or by  circulation of stimulus packages. Let's see what actually happened in the 2008 crisis. 2008 Subprime lending crisis Subprime loans were loans when the LTV was higher than 1...