David Kauders FRSA, a founder member of Kauders Portfolio Management AG, explains why the economic consequences of the coronavirus pandemic are more complex than just repaying extra government borrowing and keeping unemployment down.
The world’s collective debt pile is THREE TIMES the value of the world’s annual global economic output. About three-quarters of the debt is the result of borrowing by businesses and households.
What does this debt cost? Surprisingly, nobody seems to have thought about it! When I started researching my new book, The Financial System Limit, I could find no figures for the global cost of all debt. The analytical community only seems interested in government debt, which is merely a quarter of total debt.
No wonder, then, that banks are rather choosy about who they will lend coronavirus pandemic support funds to. Are you surprised that households now prefer to save rather than spend? This behaviour
Credit Union Journal will be merging with its sister publication American Banker.
Journal editor Aaron Passman and Banker editor Alan Kline write, “We remain deeply committed to the credit union community. The management and staff at Credit Union Journal are not changing, nor is our focus on covering the issues that matter most to the industry, from the smallest credit unions to the largest.
“American Banker will have a dedicated section for Credit Union Journal where you will be able to find all the content you’ve come to expect from us. You’ll still get everything you need for mission-driven, strategic decision-making, with a focus on insights and analysis. In addition to our extensive coverage of credit union growth strategies, law and regulation, technology and more, you’ll also gain access to the sophisticated analysis of the banking industry that American Banker has been delivering for over 150 years.”