Q3 2011 "Flow of Funds"

It is only appropriate that the release of the Fed’s latest Credit data directs our analytical focus back to the U.S. Credit system and economy. For the quarter, total system Credit market debt increased to a record $53.825 TN. While some analysts continue to refer to “deleveraging,” it is worth noting that total system debt remains at a staggering 355% of Gross Domestic Product (GDP). This is not meaningfully below the peak ratio of 375% in Q2 2009 (ended the nineties at 264%).