The DEBT BUBBLE and GREENSPAN.

Ever wonder how big the problem really is?

This chart pretty much sums it up.

Notice the Greenspan years.

Total US Debt as Percentage of US Gross Domestic Product.


<a href="http://imageshack.us"><img src="http://img338.imageshack.us/img338/2909/greenbubbleln0.jpg" border="0" alt="Image Hosted by ImageShack.us"/></a><br/><a href="http://g.imageshack.us/img338/greenbubbleln0.jpg/1/"><img src="http://img338.imageshack.us/img338/greenbubbleln0.jpg/1/w640.png" border="0"></a>

NED DAVlS chart marked up by me.

 

Oh and that little blip on the left is the start of the Great Depression.

Inquiring minds want to know.

 

in 20 years we will have an even greater credit bubble and someone here on ET probably not yet born will make the same comment about the "little blip on the left" (2008)

 

Great post!

Where did you find this chart?

 

Maybe they'll call it the Greater Depression.

 

republicans are cool...maybe we can clone another earth....

 

Did you miss that part, about the run up during Clinton/Greenspan's years?

 

everyone assumes infinite positive growth, not gonna happen

 

Notice the Reagan years.

 

the chart doesnt mean nothing.

in booming years debt increases exponentially to fuel the economic growth.

while in recession years debt contracts due to lack of demand for capital.

thats it.

economic cycles are the reason behind the increase or decrease in the levels of debt. not the the other way around.