Isn't the US debt of 125% of GDP dangerous for the future of S&p 500 and American stocks?

Posted: Jan 19, 2025

  • Stocks in Spain, Portugal, Italy, Greece, and other countries did not fully recover from the 2008 crisis
  • These countries struggled with debt and were close to default in 2010-2012
  • USA now has a debt larger than Greece's in 2008
  • Japan's debt is over 200% and many EU countries are also over 100%
  • Question raised about where to diversify with international stocks


What do people on Reddit think?

🚨 Reddit sentiment: mixed/negative - The comments reflect a mix of confidence in the US's ability to handle its debt and skepticism about the long-term sustainability of current debt levels. However, concerns about potential defaults and the unsustainable nature of the debt contribute to a generally negative tilt in sentiment. Summarized comments: - US national debt viewed by some as an asset because it represents entities invested in the US and needing its growth - Concerns about the potential for US government defaulting due to increasing debt and the limitations of corrective actions - Mention of Trump's tax cuts and their impact on national debt - Comparisons between US and EU handling of debt and austerity measures during financial crises - Warnings about the unsustainability of current US debt levels and eventual consequences - Arguments that the US will continue to sustain its position due to its ability to print money and manage obligations - Mention of Japan's high debt as a comparison, noting differences in how countries with their own currencies manage debt - Questioning where investors would turn if the US economy falters, with gold mentioned as an alternative



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