Great Recession which took place in the 2007-08 period has been documented well in the history books. Majority of the participants in the market and the experts of investment had not seen the greatest financial crisis take place. An ingredient which had led to this crisis had been the debt boom of the housing market in addition to the ease in the conditions of credit where the consumers could borrow their money. This is a situation which the world can again see. The Wall Street has been packaging the debt obligations in the tranches and selling them to public and this is something a few of the experts say that the economy should have learned from the crisis which had then taken place.
The experts see a major risk in the economy which is right now looking on fire and the surging stock prices as there is no concern about the debt of household. The consumers have not learned the lessons from the crisis which had taken place at that time as the non-housing debt had grown form the level of 2.62 trillion in the quarter 4 of the year 2009 to a level of 4.2 trillion in the 2019’s fourth quarter. A reference has been there form the Federal Reserve Bank that the non-housing debt has increased in a very large manner.
These experts are of the belief that there must be more attention paid from the administration and the fellow investors and analysts towards this aspect as this might be giving invitation to another crisis akin to the one which had taken place during the unfortunate times of the Great Recession in 2007-08.
Be First to Comment