Minimize

Welcome!

Is This What a Credit Bubble Looks Like?

April 22, 2014

This is a great discussion on a new site I found today. This author takes a look at the recent pick-up in business lending. While some people consider an increase in business lending a positive sign for the economy it really all depends how the business use this money. As the author points out the business are not injecting this borrowed money back into the economy. Rather many big names are simply just buying back shares, which does nothing for improving the company except for on paper.

Here are a couple charts that stood out for me.

Corporate borrowing as % of GDP

With cheap money continuing to be available to big corporations there is reason this trend will slow. Until the cracks in the system start to grow. Watch out if interest rates ever start to rise again.

Click here to read the full post and the corresponding explanations of the charts.

Discussion
7 Comments
    Apr 22, 2014 22:24 PM

    Jerry ootb, you worry too much about them legalizing MMJ instead you should get your priorities right. http://www.youtube.com/watch?v=CvwQmxLaknc&list=RDEvGJvzwKqg0

    CFS
    Apr 23, 2014 23:25 AM
    CFS
    Apr 23, 2014 23:30 AM

    Gold now held in China far exceeds official reports.

    (Not by a few percent, but by a factor of OVER 10.
    i.e. approx 15,000 tonnes; far exceeding US fake holdings of 8,130 tonnes, which exist mostly on paper only.

      Apr 23, 2014 23:19 AM

      If gold far exceeds the report……maybe, that might account for the silver being accumulated in Hong Kong the last couple of days.
      Maybe, Miles F…..report concerning the silver hoard on loan, from China is moving back in China’s hands…………This will be real funny for the shorts on silver.