One thought on “Stockman: Debt At 3.5x GDP And Climbing”

  1. If one were to wonder why there seems to be little concern, we might look at the real estate mortgage industry. Ideally, the qualifying debt to income ratio for a new home loan is of 33%. Or, in plain English, no more that 1/3rd of your monthly income going towards towards the monthly obligations against your home.
    Thus, a ratio of 3.5:1 with our national debt against the Gross Domestic Income is not that much out of our reality. NO, I am not agreeing with such underwriting guidelines with our economy, but it is just so.
    It wasn’t until the lending industry allowed the qualifying rations up to 60% that our economy took a major hit. Therefore with the current 3.5 : 1 and the current levels of increased spending, we probably have some time to prepare by paying off all unnecessary debt, deal with health issues now, stock up on what one feels is essential for life and or “just to get out of Dodge”.
    As much as I would like to think that our current President can get a handle on Congress’s insatiable spending , time has proven otherwise.
    If Trump loses, the borrowing from the Fed’s will continue to increase without thought…or so it seems. Bottom line….Were Fucked!

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