Who Committed Excess Borrowing?
With a hat tip to Rebecca’s post below, normalized borrowing growth in several sectors over the past 25 years. (Source: FRB Flow of Funds data)
Yes, there are three very similar (shades of blue) lines—but they are all household and non-profit data. (The growth in “credit market instruments” is, presumably, primarily driven by the non-profit sector.)
Note also—as Rusty would certainly tell you if I didn’t—that borrowing in the non-financial sector (the red line) has the flatest line of all (it’s at the top through the early 1990s and near the bottom as of last year.
Compare this with Mike Konczal’s graphic of corporate profit shares over the same period (h/t Brad DeLong) and there is a fairly clear case that accusations from bankers that consumers are suffering because of their foolish, excessive borrowing is a case of a very grimy pot talking to a copper kettle.
Well, yes, of course. Financial firms borrow as they expand the money supply. The George Bush Sr, handlers in the 80’s knew how to circumvent the Greenspan Fed, who were reticent to expand the money supply in the face of nacient inflation. The Southern coalition used FDR America’s honesty against ourselves. Good and honest goals corrupted using financial accounting.
I recognize the decision by the Dixicrats to embrace their tendencies after LBJ’s civil rughts act of 1964. No longer to hate A Lincoln and TR Roosevelt.
The election of the southern Dixiecrat (Bill Clinton – Arkansas – Walmart) completed the chain. Rerun Reagan-Bush (80’s) , GW Bush 2001 – 2009. The Southern, plantation capitalism chain of events was complete, never recognizing their salvation by the FDR TVA.
Yes. People were planning along the New Deal and Great Society rules, while the scum con men were re-writing the rules. Now, we have a Republican in the White House and don’t even know it.
Well, yes, of course. Financial firms borrow as they expand the money supply. The George Bush Sr, handlers in the 80’s knew how to circumvent the Greenspan Fed, who were reticent to expand the money supply in the face of nacient inflation. The Southern coalition used FDR America’s honesty against ourselves. Good and honest goals corrupted using financial accounting.
I recognize the decision by the Dixicrats to embrace their tendencies after LBJ’s civil rughts act of 1964. No longer to hate A Lincoln and TR Roosevelt.
The election of the southern Dixiecrat (Bill Clinton – Arkansas – Walmart) completed the chain. Rerun Reagan-Bush (80’s) , GW Bush 2001 – 2009. The Southern, plantation capitalism chain of events was complete, never recognizing their salvation by the FDR TVA.
Yes. People were planning along the New Deal and Great Society rules, while the scum con men were re-writing the rules. Now, we have a Republican in the White House and don’t even know it.
Well, yes, of course. Financial firms borrow as they expand the money supply. The George Bush Sr, handlers in the 80’s knew how to circumvent the Greenspan Fed, who were reticent to expand the money supply in the face of nacient inflation. The Southern coalition used FDR America’s honesty against ourselves. Good and honest goals corrupted using financial accounting.
I recognize the decision by the Dixicrats to embrace their tendencies after LBJ’s civil rughts act of 1964. No longer to hate A Lincoln and TR Roosevelt.
The election of the southern Dixiecrat (Bill Clinton – Arkansas – Walmart) completed the chain. Rerun Reagan-Bush (80’s) , GW Bush 2001 – 2009. The Southern, plantation capitalism chain of events was complete, never recognizing their salvation by the FDR TVA.
Yes. People were planning along the New Deal and Great Society rules, while the scum con men were re-writing the rules. Now, we have a Republican in the White House and don’t even know it.
I did not post 3 times. Sorry
I did not post 3 times. Sorry
I did not post 3 times. Sorry
Keep in mind too that a lot of credit cards were paid off with HELOCs and mortgage ReFis. Of course in many of those cases the FBs proceeded to max out the CCs again. So a fair percentage of the mortgage debt started out as unsecured CC debt.
correlation: