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yellerkat

Scary Chart Of The Week

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From Ticker Forums:

quarterly_tphp.png

As one of the posters there says:

Somehow I don't think we're going back to business as normal for quite some time.

....credit card companies will not be hitting any growth targets in this climate.... <_<

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Guest DissipatedYouthIsValuable
I'm still not sure what it means.

Looks like people aren't borrowing.

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From Ticker Forums:

quarterly_tphp.png

As one of the posters there says:

Somehow I don't think we're going back to business as normal for quite some time.

An unprecedented shitstorm lies ahead methinks.

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Is it new borrowing then? How can that be negative? If it's amount of borrowing, how can everyone have paid it all back?

Default?

Actually, the more I look at it the fishier it seems.

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Explanation in Robert Pestonesque blog simplicity for the hard of thinking required please.

Has something very bad happened that means we need to pay even more tax to Gordon? :unsure:

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Default?

Actually, the more I look at it the fishier it seems.

Fishy? Moving from 2.6 Trillion debt to 400 billion apparent surplus in a year? Bejaysus, someone must have found a few coins behind the sofa.

No, I still don't get it either.

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I'm still not sure what it means.

Nor me, the duplicate post by Yeller or the non financial borrowing? Initially I was really freaked by Yeller's duplicate, I mean, this posters' got 3100+ posts, this guy knows what he's doing and yet, out of the blue...a duplicate post. Spooky.

I'm guessing the non-financial borrowing, as DYIV said no-one's borrowing. No-one. THE ECONOMY IS DEAD>

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Nor me, the duplicate post by Yeller or the non financial borrowing? Initially I was really freaked by Yeller's duplicate, I mean, this posters' got 3100+ posts, this guy knows what he's doing and yet, out of the blue...a duplicate post. Spooky.

I'm guessing the non-financial borrowing, as DYIV said no-one's borrowing. No-one. THE ECONOMY IS DEAD>

...although the figures are USA data ..the same is true here ....and it's not for the desire to borrow ....every day you hear about small , medium and larger companies being refused lending and having their borrowing limits reduced....if the Bank's are restricting lending the amount of borrowing will dive.... <_<

Edited by South Lorne

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Debt is bad. Repayment of debt is good.

The only way that we will get out of this mess is for the private sector (individuals and businesses) to deleverage themselves to the point where they can afford to start spending money again.

During the deleveraging process, monetary and fiscal policy (QE and increasing deficits) have to be very lax to accomodate the private sector deleveraging so that the economy avoids implosion.

High or hyper inflation is not a foregone conclusion. There is a small chance that monetary and fiscal policy is managed well enough that it becomes more restrictive when the private sector deleveraging is close to complete and private sector spending can, once again, stand on its own two feet.

I see this graph as an explanation for the reason that we have current expansionary policies that might actually be less ominous than many fear. It shows that the private sector are well on the way towards repairing their balance sheets.

The healing process might actually be well underway.

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The healing process might actually be well underway.

...a lot of destruction also where good companies fail to secure facilities from their Banks ...this will also delay recovery... <_<

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I see this graph as an explanation for the reason that we have current expansionary policies that might actually be less ominous than many fear. It shows that the private sector are well on the way towards repairing their balance sheets.

The healing process might actually be well underway.

Wasn't that Hugh Hendry's argument? That the private sector deleveraging was way more significant than the public sector printy printy.

If it isn't hurting it isn't working, eh?

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"The healing process might actually be well underway."

That would be green shoots then?

We are nowhere near the green shoots phase. The repair of private sector balance sheets has only just started at the expense of damaging public sector balance sheets.

It is going to take at least 3 to 5 years for the private sector to earn its way out of this mess followed by another 5 to 10 years for the public sector to confiscate enough wealth from the private sector to repair its own balance sheet.

The healing process is underway but it is something like 7 to 15 years away from self sustaining stability.

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