Folks, buckle up. When we couple this story with another story we reported on a while back about the considerable housing market spike in prices right now, we have reason to be concerned about the near-future state of the American economy.
The Federal Reserve is warning Washington, in a bid to encourage massive stimulus spending, that the level of business borrowing is at historic highs, which is not a good high to hit.
The excess of the few may lead to the misery of the many, and those few are SURE to get bailed out, once again, when the negative interest bank accounts hit the fan.
From www.reuters.com 2021-02-19 11:31:00 WASHINGTON (Reuters) – The risks of ongoing business failures in the United States “remain considerable” even as the economy emerges from the coronavirus pandemic, the Federal Reserve said on Friday in its semi-annual monetary policy report to Congress.
Business borrowing “now stands near historic highs,” the U.S. central bank said in the report. Even though large cash balances, low interest rates, and renewed economic growth may dampen problems in the near term, “insolvency risks at small and medium-sized firms, as well as at some large firms, remain considerable.”