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

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved