The U.S. Federal government’s profligate spending is spiraling out of control. America’s debt now stands at a staggering $34 trillion and there’s no sign of slowing.
“It seems on a trend and trajectory that is certainly unsustainable,” veteran analyst Josh Steiner explains in this clip from The Call @ Hedgeye. “Deficits are projected to grow from around $1.5 trillion to $2.5-3 trillion per year over the next 10 years.”
“We’re probably getting somewhere closer to this critical threshold or this phase transition tipping point. There’s a lot of debt.”
“You’ll hear, ‘Well, as long as Apple’s going up, why do any analysis?’ We’re going to keep doing the work,” adds Hedgeye Risk Manager in Chief Keith McCullough. “Owning everything that everyone else does with no analysis is disastrous. We clearly want to risk-manage these divergences. It’s not like markets aren’t figuring this out.”
Click above for the full clip.
