Reuters has dubbed the 2010s the “decade of debt.”

The Reuters report focused on the ballooning levels of corporate debt, but consumer and government indebtedness has skyrocketed over the last 10 years as well. This massive debt bubble poses a significant systemic risk to the financial system and the economy. Some in the mainstream are starting to hint at this, but they still don’t seem to recognize the magnitude of the problem.

Corporate debt has surged to record levels over the last 10 years. Bond issuance by US companies topped $1 trillion every year of the decade that began Jan. 1, 2010. SIFMA, the securities industry trade group, called it an “unmatched run.”



Read more…