Monday, March 1, 2010

Deflation update: Deleveraging continues

There can be no end in sight if we do not see any kind of credit normalization (i'm not even talking about expansion!!). Pls look at the following charts and draw your own conclusions.

Consumer Credit is still in a free fall...
...as is Bank Lending, there no way to give this a positive spin....
....and the shadow banking area (source of ample liquidity in the boom) is still broken...

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