Elizabeth Warren Warns : The Economic Crash is Coming

In an article she wrote yesterday in medium .com , Elizabeth Warren the Democratic presidential candidate and probable next president of the United States is sounding the alarm as never before , she  painted a bleak picture of the status of the american economy . She said that the Household debt is out of control , the Corporations are deeply in debt, and The Manufacturing is in recession .

The country’s economic foundation is fragile. A single shock could bring it all down. And the Trump Administration’s reckless behavior is increasing the odds of just such a shock. she added .And she goes on explaining :
 When I look at the economy today, I see a lot to worry about again. I see a manufacturing sector in recession. I see a precarious economy that is built on debt .  both household debt and corporate debt .  and that is vulnerable to shocks. And I see a number of serious shocks on the horizon that could cause our economy’s shaky foundation to crumble....
and she adds .

and she goes on explaining :

 A generation of stagnant wages and rising costs for basics like housing, child care, and education have forced American families to take on more debt than ever before. The student debt load has “more than doubled since the financial crisis.” American credit card debt matches its 2008 peak. Auto loan debt is the highest it has ever been since we started tracking it nearly 20 years ago, and a record 7 million Americans are behind on their auto loans . many of which have similar abusive characteristics as pre-crash subprime mortgages. 71 million American adults — more than 30% of the adults in the country — already have debts in collection. Families may be able to afford these debt payments now, but an increase in interest rates or a slowdown in income could plunge families over a cliff.
Corporations are also deeply in debt. Leveraged lending — lending to companies that are already seriously in debt — has jumped by 40% since Trump took office, spreading “systemic risk” throughout our financial system. These high-risk loans now make up a quarter of all American business loans, and they look a lot like the pre 2008 subprime mortgages: poorly-underwritten loans with minimal protections that are then packaged and sold to investors. I’ve warned regulators about my concerns — which experts share — but their tepid response shows they haven’t learned the lessons of the last crisis. she added .

Despite Trump’s promises of a manufacturing “renaissance,” the country is now in a manufacturing recession. The Federal Reserve just reported that the manufacturing sector had a second straight quarter of decline, falling below Wall Street’s expectations. And for the first time ever, the average hourly wage for manufacturing workers has dropped below the national average.
then she said :
The administration may breach the debt ceiling in September, leading to economic turmoil that top economists say would be “more catastrophic” than the collapse of Lehman Brothers in 2008. Trump’s trade war with China threatens American manufacturing and has already hurt American companies that investors think of as “industry bellwethers,” while feeding an all-time economic slowdown in China that could have dramatic ripple effects on the American economy. And Trump is goading the U.K. toward a no-deal Brexit, which even his own administration acknowledges would have “immediate and significant spillover effects” to our economy.
The financial markets agree that there is a serious risk of downturn in the near future. The U.S. Treasury yield curve — a barometer for market confidence — normally slopes upwards because investors demand higher yields for bonds with longer maturities. But this March, it inverted for the first time since 2007, signaling that investors are so worried that things are going to get worse that they’d rather lock in lower rates for the future today than risk long-term rates going even lower. The curve has inverted before each and every recession in the past half century — with only one false signal.
And experts agree. In a recent survey of nearly 300 business economists, three-quarters expect a recession by the end of 2021 — with more than half thinking it’ll come by the end of 2020.

she ended .

Elizabeth Warren is spot on , our economy is nothing but a Ponzi scheme and a House of Cards waiting to collapse .
The DEBT situation is one of the worst in human history.

The global debt increased ..
The corporate debt increased from 4.1 Trillions to over 6 Trillions in 10 years.
House hold debt. auto debt, student debt, you name it all, at record levels unlike any time in human history!.

 All macro factors are NEGATIVE in the near future.









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