DISHONERABLE RECORD

Total Credit MArket Debt as % of GDP Chart courtesy of ritholtz visa vi tcw
Historic debt levels
STill another look

It is hotly speculated and talked about how much CASH corporations are sitting on, but why is it that the FACT corporations are also SADDLED with record DEBT ($7T vs $2.6T cash) is never mentioned?



EWT alerts that at record low yields in 2009 Bond bulls were 99%, current reading is 98%.

OK, the chart above is suggesting to me that we have BARELY begun to deal with the debt bubble and that once a record historic credit expansion ends....as did in 1930, that ratio shown falls back to NORMAL historic levels....an historic HIGH is UNSUSTAINABLE.

IN 1929 the ratio was near 265%. SO even now more than year after the PRICK of the bubble we are near 370% ! This is as current as I could find. ATTEMPTS to reflate or send this game into "extra innings" will be futile....and maybe make matters even worse.

Our deficits show NO sign of slowing near $1.8 T a year!!! Accumulated US debt near $14 Trillion. UNFUNDED US liabilities said to be near $50 Trillion (or more?).....yet 10 yr bonds yield 2.6% ??? just above HISTORIC panic lows....good luck with that.





D