Stansberry Research on the ever growing debt bubble

Stanberry research is a publishing company that is privately owned in America. It was founded in 1999 and was initially an independent investment research firm. The company usually focuses on investment research. They are committed to providing actionable investment research and recommendations for individuals who choose to manage their own portfolios. The idea behind the research is to give its subscribers the most profitable investment ideas despite what is happening in the market.

 

They mainly have three products and services for their readers. They include the total portfolio, the income portfolio and the capital portfolio. Many readers say that they have received top notch advice and by applying the advice they have seen their portfolios grow. They claim that Stanberry research has managed to keep their standards unlike many of their competitors.

 

In an article they published in February this year names “The Bubble Grows Bigger”, they highlight how American households owe more than ever before. The Federal reserve bank of New York has released report on the last quarter debt which has grown from the previous quarter. Debt has been rising for the past 14 quarters that is for five consecutive years. Household debt is close to the previous peak in the third quarter of 2008.

 

Credit card debt had risen by the largest margin followed by student and auto loans. They however warn that this upward trend of debt will come to an end because it is not sustainable. There is a high yield corporate spread which is an indicator of stress in the credit market. Porter believes that this will not end well since there will be a financial reset that will wipe out trillion of dollars of this debt in the massive devaluation of savings. As more and more Americans fall behind on their payments, you will begin to see more and more of ideas similar to Porter’s being discussed. The idea behind erasing the debt is that more money will go into economic growth over the next ten years and over 1 million jobs will be created every year reducing the overall unemployment rate.

 

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