Chart of the Week
Written by John O’Donnell, Online Trading Academy
While much attention is paid to the deficit spending of the federal government, the overall (total) credit in proportion to GDP continues to contract. The driving force is entirely in the private sector. I review the latest chart showing that total credit to GDP ratio is contracting at the highest rate in 40 years. And its not because GDP is growing very fast.
Click Read more >> to view the video.
The video is just over three minutes long.
See also recent GEI News article that reports on this data as a recession predictor.
