Trillions in corporate debt are due to be added on to our already mounting debt within the coming years.
Will Nasgovitz, who oversees about $1.3 billion in assets as the chief executive of Heartland Advisors, said that “With interest rates low, the economy strong, and relatively easy lending standards, the thinking went that borrowing to buyback shares or finance acquisitions was a low-risk strategy. But the next five years could severely test that Pollyanna view.”
To put it simply, 48 percent of all current outstanding commercial debt is due by 2023. That’s $3.3 trillion, to be exact.
“The sheer volume would be challenging for the market to digest in the best of scenarios, let alone this late in an economic expansion,” Nasgovitz wrote. “Adding to our sense of caution are early signs that lending standards have begun to tighten for commercial and industrial borrowers.”
Despite Nasgovitz skepticism that a financial crisis will take place, multiple economists are in disagreement.
The U.S. economy is straining to uphold the already $22 trillion dollars worth of debt already on its shoulders anymore and the economy is sure to crack beneath the pressure.
This means that you should be looking for a way to protect your retirement money if a recession strikes the American bank account, yet again.
Don’t allow the debt of our nation to put yourself in debt, as well.
To learn how you can guard your nest egg from a financial crisis, call this number: (888) 394-6116