A pause in a secular up trend, regardless of the spin and political rhetoric, does not represent change. Change cannot be averted by talk and meaningless dog-and-pony show style actions. The flow of funds report reveals that domestic non-financial credit resumed its upward trend in late 2010. Financial credit creation, see Jim’s chart below, will likely turn in 2011.
History suggests that real (meaningful) change rarely comes without pain and sacrifice. Ignore the headlines. There’s simply no returning to the old financial and economic paradigm. In short, that lifestyle is dead. Recognition, protection, and profit should be the focus of public that tends to wait until the last minute to act.
Credit Market Debt by Sectors: Domestic Nonfin. Sector, Rest of the World, And Financial Sector As A % GDP
It is madness.
Eric
When will they ever learn? They use a Weapon of Mass Financial Destruction, an OTC derivative, the Credit Default Swap (CDS), to rate creditworthiness. Madness!
Jim
Goldman Is Now A Bigger Credit Risk Than Citigroup
