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Senior Bankruptcy Rates Up
The Market Bull 2018

 
 
00:00 / 2:32
 
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The major averages enter the final hour about even on little real news, though the trade war with China seems set to go into overdrive soon with substantial increases in applied tariffs by both sides.

The Producer Price Index or PPI was unchanged in July after energy prices fell notably. On a year ago basis the PPI slipped .1% to 3.2%. A little higher than its long-term average of 3.1%.

The Fed’s Tech Pulse continued to rise in July with a 1.2-point gain to 102.2. This marks the highest figure for this series since the Dot Com boom, some 17-years ago. Despite waning consumer enthusiasm for social media platforms and Facebook in particular following its recent scandals.

Wholesale inventories gained .1% in June, that said this series is weakening markedly. Sales fell .1%, the first decline in 5-months.

Lost in the official narrative about how great the economy is doing. Bankruptcies among the older age groups are rising dramatically according to a new study by The Bankruptcy Project. Data from the report shows that the age group 55-64 has seen bankruptcy rates jump 66% since 1991. While senior citizens age 65 and older have seen their bankruptcy rates jump 204%. The report went on to note that only a small portion of the outsize gains can be attributed to an aging population, or demographics. Worse senior citizens over age 65 now make up 12.2% of all bankruptcy filings. Many cited medical bills but guaranteeing their children’s student loans was another large contributor. As are the Fed’s zero interest rate policies that have crushed savers and those on a fixed income, primarily retirees. While encouraging all manner of leveraged, debt driven speculation and asset bubbles all but certain to blow up as they have in the past.

This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.

You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.

Rebroadcasts, additional writings, and other entries are also available on my Blog at www.clinvestments.com

Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.

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