Thursday, December 10, 2015

Two Charts That Show the Financial Crisis Is Here

The third financial crisis in 15 years has already arrived without much fanfare -- yet.  The following charts show how the credit markets are already "turmoiling" as bad as 2008 as the global economy is slowing sinking into recession.

Junk debt is blowing up. And there's a lot at stake. Try $3.57 Trillion in junk debt issued in the past 3 years alone -- which dwarfs the measly $1.3 Trillion total of subprime mortgage loans accumulated by 2007.

If you'll recall, the "turmoiling" in subprime in 2008 nearly brought down world finance and the world economy.  Global trade came to a standstill.  Now the amount at stake, in the US alone is 3 times worse.

The Gross Issuance of Junk Rated Debt Since 2012 Dwarfs Subprime Debt in 2007

Junk Bond Rates Already At Crisis Levels
Alarm bells should be going off that, one of the most telling indicators, is flashing red with horns blaring. But you're not hearing any warnings from mainstream media or mainstream economists. Meanwhile, we're careening once again to financial disaster for the 3rd time in 15 years.

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