The Deleveraging Credit Purge Cycle

August 7th, 2015
in News, econ_news, syndication

Chart of the Week 07 August 2015

Written by , Online Trading Academy

Excessive credit build-up is followed by a credit purge as bad debt is eliminated and repayable debts are reduced.  These actions present a serious drag on economic activity and can persist for many years, even a decade or more.  If credit is the mother's milk of capitalism, then deleveraging can create nutritional problems and deflation becomes a significant risk.

The deleveraging credit purge cycle is discussed in video after the Read more >> jump.

Follow up:

Source: YouTube

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