14 lines
1.1 KiB
JSON
14 lines
1.1 KiB
JSON
{
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"HubID": "5200",
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"Date": "3/30/2025",
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"HubTags": [
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"External Platform Posts",
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"Future Map"
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],
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"Contacts": "",
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"Companies": "",
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"File": "",
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"Image": "5200__Image_URL.jpg",
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"Summary": "<p>Debt issuance went parabolic in 1997. What's the problem and why did it explode that year? It is not just the U.S., but the whole world is awash in debt, an obligation against future income, which is fine if income is rising, but the world in aggregate is struggling to grow, making debt that much harder to pay back. The world continues to amass massive debt in hopes that growth will return to pay it back. That is not likely at this point due to demographics and costs from climate change and geopolitics. Some countries like the U.S. have the opportunity for boom growth in the coming decades to pay back debt. What happened in 1997? That is when derivatives were first introduced, making it far easier to issue debt and facilitate rehypothecation (when a broker or bank reuses collateral posted by a client to secure its own borrowing), enabling a more complex and leveraged system around debt and collateral.</p>",
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"Notes": ""
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} |