Friday, June 13, 2008

US Debt Deflation

I did some numbers, if this model is right, that is I have the right inputs, we should from March 08 on see the first signs of a credit contraction.


ASSETS ---Falling

Banking- restrictive lending, Real Estate, commercial, stocks, mortgage Equity withdrawal

Borrowing-demand has plateauted, except credit card growth

Incomes -falling

Costs-- Rising


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These are my own views, please enjoy these insights