Friday, August 2, 2013

A sobering scatter plot

In a follow up to an earlier discussion on China's credit growth (see post), here is a rather alarming scatter plot from Credit Suisse.

Source: CS (click to enlarge)

It shows the non-financial credit growth vs. the investment growth across a number of nations. When credit growth significantly outpaces investments into the economy, a nation could be in for a deleveraging period. The 1985-1989 Japan is an example.
From our sponsor:
Related Posts Plugin for WordPress, Blogger...
Bookmark this post:
Share on StockTwits