Sunday, April 5, 2009
Nice plot of total US credit market debt breakdown
The Great Depression was partially caused by the vicious deleveraging of corporations and household. This time corporations are somewhat better off but households are worse and financials are a basket case. Remember, our money supply is determined by debt. Debt is money. If debt contracts, so will the money supply and this will lead to deflation.
Posted by David at 9:00 PM