Obama’s Hidden Economic Bubble
President Trump received yet another media backlashing when he said that he had “inherited a mess” from former President, Barack Obama. Essentially, Obama’s economy was a healthy jobs market dependent on cheap debt.
When this bubble bursts, just like the last one did, the manufacturing jobs Trump had fought for will be in jeopardy. The country’s last bubble happened between 2000 and 2007, where Americans double their mortgage debt.
The staggering number went from $5.9 trillion to $10.6 trillion.
President Obama’s Cheap Debt
Since the crash, both Democrats and Republicans have wanted to build a more sturdy economy, but somehow they’ve built another bubble under former President Barack Obama. This happened because of cheap debt.
The New York Post reports:
“In 2010, Americans owed $809 billion on their cars (after adjusting for inflation). Today, they owe nearly $1.2 trillion, according to the New York Fed. And the rate of growth has been accelerating: Last year alone, Americans borrowed $93 billion to buy cars (after accounting for people who repaid such debt); 2016 was “the highest auto loan . . . year in the 18-year history of the data,” Fed researchers said, not entirely enthusiastically.”
Obama Ensured Bubble Wouldn’t Burst Under Republicans
Armstrong Economics reports:
“The debt deal struck by President Barack Obama and the then House Speaker John Boehner back in October 2015, was done purposefully to ensure that the debt crisis would not unfold under Obama and the Democrats. John Boehner never saw a government role of red tape he never cherished.”
“The debt deal was absurd that the $20 trillion mark for the US debt ceiling as of March 15, 2017, would become permanent. Sure, on the one hand, this could lead to a severe budgetary crisis this summer if the Democrats try to use this to discredit Trump since the media will blame Trump and not Obama.”