(click on image to enlarge, via John Maudlin at Big Picture)TW: I posted a couple of weeks ago a graph showing the equity withdrawals from homes during the 2001-2007 period. (http://treylaura.blogspot.com/2009/01/we-were-spending-like-drunken-fools.html). The graphic above reflects the impact of those withdrawals on our overall GDP. The impact obviously was massive and indicates the house of cards upon which our economy (and several others in particular the UK and Spain) rested during much of the past eight years. Working off this economic hangover will take years and will be extremely risky.
1 comment:
More like 25 years of a credit expansion that went parabolic from 2002-2007 when Greeny tried to correct the excesses of the technology bust.
Balance sheet repair will be the order of business for the boomber who's median age turned 52 this year.
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