{"id":33746,"date":"2018-04-25T16:11:12","date_gmt":"2018-04-25T21:11:12","guid":{"rendered":"http:\/\/olduvai.ca\/?p=33746"},"modified":"2018-04-25T16:12:13","modified_gmt":"2018-04-25T21:12:13","slug":"debt-enabled-asset-bubbles-on-crash-course-with-demographics","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=33746","title":{"rendered":"Debt-enabled asset bubbles on crash course with demographics"},"content":{"rendered":"

Debt-enabled asset bubbles on crash course with demographics<\/a><\/h3>\n
\n

For anyone who may have been unconscious or in outer space for the last 20 years, here are the Coles Notes:<\/p>\n

If finance had not been able to \u2018securitize\u2019 debts (turn them into assets) and sell them to speculators\/investors over the past two decades, then debt creation could not have gone to such extremes and consumers would not have been able to borrow and spend themselves so far into financial ruin.\u00a0 If western consumers had not been able to borrow themselves so far into ruin, they would also not have been able to buy so many goods from Asia and other developing nations for a time.\u00a0 Asia and developing nations would not then have been able to mint so many new millionaires and billionaires in their governments and businesses who then funneled capital into western property markets, and western property markets would not have appreciated so far beyond domestic income gains.\u00a0 If property prices had not increased so far beyond income gains, then households would not have had to borrow so much just to get a roof over their heads or a post-secondary education.\u00a0 If they had not been able to borrow so much, property prices, education and related services would never have been able to rise so much for so long, and become so unaffordable for the masses.\u00a0 But they did.<\/p>\n

Now, as William Butler Yeats (1854-1939) warned in his poem The Second Coming<\/a>,<\/em> the world is upside down and \u201c<\/em>the center cannot hold\u201c:<\/em><\/p>\n

Turning and turning in the widening gyre
\nThe falcon cannot hear the falconer;
\nThings fall apart; the centre cannot hold;
\nMere anarchy is loosed upon the world,
\nThe blood-dimmed tide is loosed, and everywhere
\nThe ceremony of innocence is drowned;
\nThe best lack all conviction, while the worst
\nAre full of passionate intensity\u2026<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Debt-enabled asset bubbles on crash course with demographics For anyone who may have been unconscious or in outer space for the last 20 years, here are the Coles Notes: If finance had not been able to \u2018securitize\u2019 debts (turn them into assets) and sell them to speculators\/investors over the past two decades, then debt creation […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[36,19928,195,2889,19929],"class_list":["post-33746","post","type-post","status-publish","format-standard","hentry","category-economics","tag-asset-bubble","tag-danielle-park","tag-debt","tag-demographics","tag-juggling-dynamite"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33746"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33746\/revisions"}],"predecessor-version":[{"id":33747,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33746\/revisions\/33747"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}