Why We Should Worry A Lot about Today’s High Debt Levels
The dot com and housing bubbles of the recent past were marked by big increases in debt for those sectors, followed by sharp economic and market declines. Today, debt is spread across many areas (See chart below). And that is extremely worrisome for the economy and the markets from a historical point of view. For more about big debt crises, their causes, solutions and how investors can protect themselves here’s a link to get a free pdf copy of the highly regarded “A Template for Understanding Big Debt Crises” by Ray Dalio, founder of Bridgewater, one of the world’s largest hedge fund.