Does the U.S. Still Have a Debt Problem?
Total debt (government, corporate, and individual) in the United States has increased from $50 trillion in 2008 to over $80 trillion today.
Read MoreTotal debt (government, corporate, and individual) in the United States has increased from $50 trillion in 2008 to over $80 trillion today.
Read MoreThe federal government ran a deficit of $3.1 trillion in 2020. If passed, President Biden’s $1.9 trillion COVID-19 relief proposal will pay for much of itself with bond sales. With all this debt supply, you would think that if demand does not increase, then interest rates would have to rise.
Read MoreMany retirees who are frustrated by low rates have put money that was earmarked for bonds into stocks, hoping the dividends plus the growth will provide sufficient income.
Read Moreby Tim Hayes | Jan 22, 2020 | Federal Reserve
There is no way to know for sure. Still, when the Fed adds money to the economy by buying bonds from non-banks, the stock market seems to go up. When they subtracted cash from the economy by not reinvesting mortgage payments (quantitative tightening), it went down.
Read MoreAs an independent financial advisor, I have access to many financial products, including mutual funds, ETFs, stocks, bonds, annuities, and life insurance programs. I use these and other products to build custom solutions for people according to their individual needs and goals.