True Wealth Radio

Why Things Could Get Bad Fast In 2008, the economy collapsed because of housing debt. Today… Total household debt has reached $13.5 trillion – nearly $1 trillion above it’s 2008 peak. Nearly every type of debt is soaring: Student debt (all-time high), car debt ($1.1 trillion; delinquencies at an all-time high). Corporate debt has nearly doubled since 2008 and reached an all-time high as a percentage of GDP — far above the peaks that preceded the last two recessions. And half of all “investment grade” debt is rated BBB — the lowest rung above “junk” status — meaning the slightest tremor could cause a devastating wave of downgrades. A particularly risky form of corporate debt – leveraged loans – have more than doubled from 2007. Bank of America keeps a running tally of "signposts" that signal looming bear market. The bad news is that 14 of these 19 indicators, or 74%, have been triggered. Two more were toppled earlier this month: the VIX volatility index (VIX) climbed above 20 and a growing number of Americans