Growing Sub-Prime Population
In this 28 minute video Gordon T Long and Charles Hugh Smith discuss through
the aid of 23 slides the growing sub-prime population in America. It is getting
little attention as more and more citizens are effectively being squeezed into
the category that was once termed 'sub-prime' but which is now simply the US
Economy.
The biggest increases in credit are coming the areas least able to afford
increased debt levels, who see themselves as having no other survival choice
in modern day America..
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Students & Their Parents
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Increasing Number Of Car Buyers
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Retail Store Chains
Breadwinner Economy Failing
The little discussed truth is that fewer and fewer jobs today actually pay
a "breadwinner's" salary. 48% of all new jobs being created in America now
pay less than $24K/Annum GROSS. Even with both spouses working the numbers
don't add up when rents are 1500/Mo, Day Care $1000/Mo and car payments for
two cars to commute to fewer jobs are minimally over $500/Mo. Then there are
3 levels of taxes, fees, licenses etc and exploding food, gas, utility, health
and education costs. It is any wonder America is now accelerating deeper into
a sub-prime economy?
Shadow Banking
The problem during the 2008 crisis was sub-prime mortgages which sent shock
waves through the Shadow Banking System. A system based on borrowing short
and lending long. Today the Shadow Banking system is feeding off Student Loans,
Car Loans and REITS. All are being securitized, repackaged and bundled through
the Shadow Banking System. Like mortgages prior to the financial crisis, it
was delinquencies which started to rise which imploded the system. This is
a show which is soon coming once again returning to a theater near you!!
Video: The Sub-Prime Economy: Students, Car Buyers and Retail Stores
with Charles Hugh Smith & Gordon T Long
28 Minutes, 23 Slides
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