Page 5 - Debt Bubble News Today : Breaking News, Live Updates & Top Stories | Vimarsana

>> yeah. >> what does that mean? >> it means actually making stuff and creating jobs and raising wages. what is interesting about what has happened in china and in the markets in the last couple of days, it's the echos of 2008. >> still? >> still. it's amazing. eight years on. what happened was, right after 2008, american consumers stopped spending. somebody had to pick up that slack and that somebody was china. they brewed up this enormous debt bubble and that's what burst in the last couple of days. there's going to be volatility going forward in part because people were expecting that with ...

Right? >> china matters a lot more than it used to. it's about double the size as it was in the late 1990s. it's got a huge debt bubble. it's popping right now. it has a debt bubble very similar to what happened before the sub prime crisis in the u.s. when china launched a stimulus program to try and compensate for the fact that americans weren't spending. i think u.s. stocks will be hit to a certain extent by this. oil prices are coming down. that's actually a little bit of a fuel for consumer spending in the u.s. >> is it about the fundamental u.s. story these days? >> in the sense of what's...

Way in which policy decisions are being taken in the chinese they brewed up a debt bubble over the last few years of epic propossessions. the debt to gdp ratio in china is about 300%, more than three times what it is in the u.s., just to give you a sense of what's happening. that's now bursting. the fall jo is because of that. >> we saw josh earn zest being asked, whenever you see a drop of 1,000 points, people get nervous. so he was asked, how are things? has the president been briefed? what he essentially said is the economy is a lot better off than several years ago. is today is what happen...

Standards. and that creates a debt bubble. that's what we've seen in both these periods, economic instability. what makes an economy stable is a strong middle class. >> the new film, "inequality for all," talks about america's growing income gap. and for many, on low end of the pay scale, who depend on government help, they may find it a pretty rough next couple of weeks, if the government shuts down. house republicans pushed through a bill that keeps the government open if congress defunds president obama's health care law. still, the senate needs to make amendments and vote. so this film, "i...

No, we're going back and we're very much looking at the credit rating agencies again. their responsibility in the housing crisis. while this other debt bubble is beginning to pop. >> shepard: it is. there's a rapper out of dallas, called himself d-dot dallas and talks about how he just wants to hit the big-time and the guidance counselor says here a student loan form, just sign your life away. >> the problem is that people came out of these expensive institutions and couldn't get a job. couldn't pay back their loan. >> thank you.