NWPA | thereaper - 6/15/2020 09:56
I believe most investors have accepted a ZIRP for the foreseeable future and that is likely baked into asset prices already. The issue with inflation is the large saturation of consumer credit. There is only a small amount of forward looking consumer income to leverage debt against. Also we are seeing the Baby Boomers wanting to deleverage as they begin to approach retirement, meanwhile Gen X and millennials are entering the economy with an average of $30k of student debt (right wrong or indifferent these are the statistics) against them before they even obtain a job, let alone a work, or credit history. Without a large amount of credit space to saturate inflation may not be a large concern near term.
30k in student debt doesn't seem bad. I had more than that when grad in 2006. Plus other debts. But I also was a working mother trucker. All that debt was gone in 6 yrs. |
WSJ on the 3 paths forward for the .gov money policy here and elsewhere
