The U.S. Is Experiencing A Dangerous Corporate Debt Bubble
The U.S. Is Experiencing A Dangerous Corporate Debt Bubble While the ever-climbing U.S. stock market (and the bubble forming in it) has been stealing most of the investing public's attention, a dangerous bubble has been forming under-the-radar in the corporate bond market. Interestingly, this corporate bond bubble is one of the main reasons why the stock market has been consistently pushing to new highs, and it will also eventually prove to be its undoing. In this report, I will show a variety of different charts to help explain the U.S. corporate bond bubble and the risk it poses to the stock market and economy. To put it simply, the root cause of the U.S. corporate bond and stock market bubble is ultra-low interest rates. Though interest rates of practically all types have been falling since the early-1980s, the trend has been amplified by the actions of central banks like the Federal Reserve since the Great Recession of 2008 and 2009. In an effort to ju...
