Pay Down Your Debt

There's a worse crisis on the way unless we get serious about tackling debt ... For all of the talk of austerity, Britain is still drowning in debt, private as well as public. 'Together, families and non-financial firms' debt is still worth 208pc of GDP and is merely back to levels last seen in mid-2007, a time when leverage was already utterly unsustainable. – UK Telegraph

Dominant Social Theme: Don't worry, be happy.

Free-Market Analysis: We've warned about a deleveraging bond market. When Western economies are seen as weak and their currencies weaker, then investors around the world don't want to buy bonds and rates rise. This makes the bonds that people and institutions already hold worth less.

A bond crash is in the making. And this Telegraph article does us the favor of pointing out that it will extend to private debt, as well. That is, a bond crash is symptomatic of a larger economic sickness, which is bound to be widespread and individual not just sovereign.

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