We recently highlighted a damning report from the Cleveland Fed regarding Peer-to-Peer (P2P) lending. Now, the troubles of a P2P market leader could be signaling the rumblings of credit deflation in this sector. Lending Club (symbol: LC) was founded in 2006 and floated at the end of 2014, amid much hoopla and a board consisting […]

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The much heralded tax changes in the U.S may result in consumer prices falling. Cutting corporate taxes is a bid to stimulate activity. Companies get a windfall of cash. They can use that cash in a few ways. Firstly, they could pay their workers more money by increasing their wages. Secondly, they could increase investment […]

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U.S. debt levels have skyrocketed since the Great Recession, and in EWI’s view, this is a harbinger of deflation. A historical review shows that major U.S. deflationary periods had one thing in common: an unsustainable buildup of credit. A classic Elliott Wave Theorist says: Easy credit has in turn created an unsustainable debt load throughout […]

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Many observers of global economies believe that governments have a big influence over those economies. Relatedly, observers also believe that central bank policies have a lot to do with a nation’s inflation rate. But, in his book, Conquer the Crash (2002), Robert Prechter called this the “potent directors” fallacy: It is nearly impossible to find […]

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Peer-to-peer (P2P) lending has grown exponentially in the last few years in both the U.S and UK. P2P finances loans to individuals or businesses by matching borrowers with investors. From almost zero ten years ago, the industry is now thought to be worth well over $30 billion. On the face of it, everyone’s a winner. […]

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The amount of global bonds with negative yields remains high. This is acting as an anchor for expectations of higher consumer prices. It’s a straightforward equation. You lend someone money and they pay you back more money – the principal plus some interest the borrower pays for the privilege of being able to do the […]

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