Bubble forming in US middle market leveraged finance

Looks likes something is cooking with what they call leveraged finance.

Not sure what that is exactly, but it's worse than before the 2008 meltdown.

Student debt is also at stratospheric levels, and the Senate is talking about doing something about it.

Can somebody explain these problems and maybe it's all part of a conspiracy to keep people in debt forever.

this article makes 5 key points ....

US middle market leveraged buyout (LBO) transactions are becoming increasingly frothy. According to the latest data from Lincoln International, risk-return fundamentals in the space are worse than they were in 2007. Here are some disturbing facts about leveraged transactions in US middle markets:

1. Leverage multiples (debt to EBITDA) are higher than at the peak of the bubble in 2007. In particular, leverage through the senior debt (dark blue) is now materially higher.

2. Yields on senior leveraged loans for middle market deals are now significantly lower than in 2007. Investors are not getting paid for taking on riskier loans.

Bubble forming in US middle market leveraged finance


Student loan debt is exploding. It has grown so much and so fast that it not only crushes millions of young people, but it also has started to weigh down our entire economy. Total nationwide student debt now stands at $1.2 trillion, more than the total credit card debt owed by everyone in America

What Does This Mean ?

a reply to: xuenchen

What Does This Mean ?

It means I wish I could link to two vids: The Doors (The End) and REM (It's the End of the World). Sorry 'bout that.

Some bean counter finally figured out all of the people are going to default on what they owe, the banks are going to fail, the government's gonna default. Pretty simple.

Bloob...

The college bubble is now showing it's effect. I live in the area of two state universities. These Universities basically support the area through jobs, etc. A recent local news report said that it's shifting to that the only wealth coming into these colleges are to be from International students, not local students. To say that these locals are becoming more poor.

I am sure it's just a symptom of a much deeper problem and a plan . When ever looking for news about money and policy in the west it's never good . Don't believe me ? Just listen to the msm and they say everything is great and ok .But you really have to flip what they say upside down and look at the underbelly .

Yea, but we like, should be able just keep on trucking again at a more inflated economy like before right? Yea a couple more years of OWS and sound weapons, but we just go on back to normal right? Iphones, and Jordans and Whoppers oh my??

Cuz like I totally have to have every new model of iphone every single year including alphabet upgrades within the same model. Plus I must say I get at least six pairs of jordans a year and have over 100 pairs. Whoppers, Big Macs, Burriots every week. Sure I have to pay a little bit more every time, but I just worker harder longer hours. Other peoples layoffs don't affect me etc.. etc.. can I get a new James Cameron or Michael Bay flick now???

Best we can do is ride it out. If anyone l3rnT n e thing from a few years ago, it was to divert personal assets from dollars to metal. Think the poor didn't learn a thing or two?? Many people who harvest copper from machines and electronics thrown out to the curb did not just turn it into dollars. They diverted those gains into purchase of silver and gold coinage. As well as maintained copper for petty cash so to speak.

Many families here who work in plumbing, HVAC, and electrical know everyone in the profession keeps their rainy day stash of salvage.







Rise from the ashes and build upon the failures of past.

end message....

This is a bubble of design and actually on a long fuse that they have lit.....I work in this industry and have been worried for years about what I've seen with regards to how students were abusing the grants & loans......In the last year, I have seen an absolute lock down initiated by the department of education on title IV funding......it has the effective impact of applying a parking brake to the whole system......Students that have been abusing the system are now trying to submit documentation to clear the codes to get future funding......and they are failing on a general basis. What does this mean......

Once they are out of attendance for more than 6 months, the loan go into repayment.....So within a year, these students that can't clear the verification codes will go into repayment and then default......Well, this started on July 1st......And I can't express the number of students i'm seeing that are getting popped for everything from aggregate loan limits(which is old news), improper IRS filing status, to issues with marital status and household resources.......

two years ago, it was pretty much submit a 1040(regardless of whether it was the one you gave the IRS or not) and that was it........to now, V4-V5 verification requires HS diploma, IRS transcript, wage and income statement, tax prep letter, notarized statement of educational purpose(for funding), copy of state issued ID.......and i swear we are one step from a blood sample.....but I ask, why go from literally nothing to everything......because they want this bubble to pop. They want all the lower income individuals that have been using this as a source of income to default and create a HUGE mess.

woah man that's messed up. Well good thing I aint never been in no college and don't owe them a dime. I know that sounds ignorant. Too damn bad! Ima keep getting my iphones and jordans, even if I got to airbrush five hundred t shirts with custom embroidery . I do hats too. Hey Ill do a custom line for colleges and universities with dollar signs holding students behind bars with rifles pointed at them.

I am so glad someone finally fixed my computer I have not posted in like exactly a year. Screwed my settings up disabling trackers and cookies from everything and started playing with the registry to see what the hell some of this crap was.

anyways, what are some other steps to prepare??

It kind of looks to me like they aren't paying much more for risky investments. This could mean the risky and safe investments might be blended more, putting more people at risk of loosing their pensions.

Deceit in the financial sector has been increasing over time. If someone gets caught, media preys on that firm while other investment companies adjust their practices silently to keep from being discovered. These companies take lots more risk than we are led to believe, their risk standards have dropped and this means even low risk investments now were once considered medium risk and medium risk were often high risk thirty years ago. These companies lack real assets nowadays. The value is based on future growth potential not in real life. It is all a sale scam. Stock has no relationship to the value of a company anymore, stock values of a company can be five hundred times the true value of the company which can fold up at anytime if things go bad.

Print even more money it is not backed by anything right - job done