The "Real" State - Corona, CA

Prolegomena. My name is Tim Trainor. The goal of this blog is to be informative. I will use this space to write about my experiences, real estate in Corona, CA, finances, non-profit organizations and my life in general. My hope is that you would return to this page in an effort to learn more about my practice, as well as more about me. The initial focus is going to be on real estate, because it is such a relevant topic and because this is where my business is focused today.

Showing posts with label Asset. Show all posts

Monday, January 26, 2009

Shocking Debt to Asset Ratios

Jeremy Grantham Money Manager at GMO says,

U.S. Had $50 Trillion Total Assets
Supported by $25 Trillion in Debt (personal and corporate)
50% debt to asset ratio

U.S. Has $30 Trillion Total Assets
Supported by $25 Trillion in Debt
83% debt to asset ratio

Debt needs to be a 40% of assets…which means that we need to decrease our debt by nearly 60% or approximately $15 Trillion.

Write Down Debt Now
Be Like Japan: Wait It Out
Inflate Our Debt

All three will require “lots of pain.”