Financial Profits and Rising Debt Era
Posted By Barry Ritholtz On July 23, 2009 @ 11:30 am In Credit,Earnings | Comments Disabled
Last week, we looked at the Total Credit Market Debt to GDP ratio [1]. Here’s another variation of the chart showing, looking at 2 differing periods –pre-1981 and post-1981.
Note that as debt rises, so too did financial firm profits.
Low Debt Era vs Rising Debt Era
[2]
GMO chart via New Observations [3]
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2009/07/financial-profits-and-rising-debt-era/
URLs in this post:
[1] Total Credit Market Debt to GDP ratio: http://www.ritholtz.com/blog/2009/07/the-jalopy-economy/
[2] Image: http://www.ritholtz.com/blog/wp-content/uploads/2009/07/debt-to-gdp-60-years-jpeg.jpg
[3] New Observations: http://newobservations.net/2009/07/17/debt_man_walking/
Click here to print.