What does it mean if the "debt bubble" bursts?

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  • Tariffs and the threat of trade restrictions are having the ironic effect of supporting dollar.
    Less trade does not benefit USA and they do not have the production ready to make up the difference. This means higher costs for USA business which makes both parties worse off.
    For now its a trading high for Dollar but ultimately it will become worth less if trade declines.

    Also its a problem for their ongoing fiscal deficit and debt which has average term of only a few years. Less trade means less dollar demand especially for that debt and likely higher costs to service that debt
  • A free pdf of Ray Dalio’s new book “A Template For Understanding Big Debt Crises” can be downloaded from the link below (email registration required)

    https://www.principles.com/big-debt-crises/
  • Great thread for those who are new to investments. I too learned a few things here and there.
    Thanks OP for starting this thread.
  • Crashy_Time
    Crashy_Time Posts: 13,386
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    finellah wrote: »
    A free pdf of Ray Dalio’s new book “A Template For Understanding Big Debt Crises” can be downloaded from the link below (email registration required)

    https://www.principles.com/big-debt-crises/


    He thinks the next big crisis is going to be in the EZ, because of lack of political/economic cohesion. Bring it on I say, the debt bubble really needs to burst!
  • My monthly saving is unknown because I am a loafer.
  • thomasca
    thomasca Posts: 13 Forumite
    Nobody in this thread has mentioned the dept in the housing market. Do you think that if the housing bubble pops the the banks will survive and get bailed out?
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    thomasca wrote: »
    Nobody in this thread has mentioned the dept in the housing market. Do you think that if the housing bubble pops the the banks will survive and get bailed out?

    Where are people going to live?
  • FatherAbraham
    FatherAbraham Posts: 1,024
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    Why is this topic considered so important that it remains "sticking" to the top of the forum?

    Seems like a waste of prime real estate to me.

    It's not like the existence of "the debt bubble" is even certain, and I'm neither aware of anyone worrying about it, or much compelling discussion on this moribund thread.
    Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...
    THE WAY TO WEALTH, Benjamin Franklin, 1758 AD
  • That makes complete sense many thanks
  • Investment topics are my favorite. there's so much to learn. Share extra information too. If I find something new, will do the same.
    Thanks
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