The Great Global Debt Unwind . . . .

[errolanderson]

From a decline in global property values, rising North American bankruptcies, a peak in consumer debt, to the start of the unwind of a $4.5 trillion Fed balance sheet, the great global debt unwind may finally be in-progress.

http://www.businessinsider.com/commercial-business-bankruptcies-2017-6

[farmaholic]

From a decline in global property values, rising North American bankruptcies, a peak in consumer debt, to the start of the unwind of a $4.5 trillion Fed balance sheet, the great global debt unwind may finally be in-progress.

http://www.businessinsider.com/commercial-business-bankruptcies-2017-6

"global property values", will this include Western Canadian farmland values?

[furrowtickler]

I don't think farmland values will take a hit yet .
But I would be very nervous if I had a $750,000 home that's mortgaged to the nines . I said it would start in Alberta and cascade accross the country . It' could happen sooner than later
One prime example was the price of new vehicles in 2007 ish . They were going through the roof just before the 2008 US crash ...... anyone price out a new truck lately ?????

[Rareearth]

Looking at this chart commodities are very cheap compared to equities. This would be good for Ag if the money flow comes back into commodities. Unfortunately it has to come out of the stock market and equities. Bad for the farmers who sold land or other investments ( pensions included)

[Rareearth]

Well that chart isn't very clear.
The top circles are stock market highs and the bottom circles are commodities index.

I for one hope the price of land stays high and goes higher, (the same for our commodities). Best case would be for stability.

[ajl]

Cheap debt has fueled all types off asset classes including stocks, bonds, commodities, and real estate. As soon as cheap debt is not available all asset classes decline together and cash is king. That being said the only one of those to have declined is commodities. Oil struggles to get above $50 and corn is now 3.50 to 4 vs $6-7 no long ago. All figures in US funds as there is no other currencies are used for serious transactions globally. There is talk of alternatives but so far none have credibility.

[errolanderson]

Cheap debt has fueled all types off asset classes including stocks, bonds, commodities, and real estate. As soon as cheap debt is not available all asset classes decline together and cash is king. That being said the only one of those to have declined is commodities. Oil struggles to get above $50 and corn is now 3.50 to 4 vs $6-7 no long ago. All figures in US funds as there is no other currencies are used for serious transactions globally. There is talk of alternatives but so far none have credibility.

Central bank manipulation is the only reason why U.S. stock markets are at historic highs. And the U.S. economy is slowing at the same time. Total imbalance in financials right now.

And according to the Conference Board of Canada, Alberta will lead Canada in economic growth next year. Go figure . . . .

[rockpile]

Nothing anyone can do but just sit back and wait for the smoke to clear and then assess the situation. Was bound to happen sooner or later so grin and bear it.

[nicolaas]

meh, this was all said in '08. Carry on.

[errolanderson]

Consumers appear tapped out. Here it comes . . . .

http://www.businessinsider.sg/credit-card-defaults-have-spiked-as-lending-standards-fall-2017-6/#EZA3hXBdABZo51d5.97