Rolf Englund IntCom internetional
2007 nearly $4.50 of credit was being generated per $1 of GDP growth.
The credit intensity of gross domestic product, or the amount of credit generated per $1 of GDP growth remained at about $1.50 for decades after 1950, eventually rising in the 1980s and peaking at $3 during the 1990s.
The credit machine went into top gear again and by 2007, nearly $4.50 of credit was being generated per $1 of GDP growth.
Between 2003 and 2007 over 70 per cent of the $4,500bn increase in credit market debt was raised by issuers of asset-backed securities, US government agencies and other housing-related entities
The credit surveys carried out on a quarterly basis by the Fed, the Bank of England, the European Central Bank and the Bank of Japan. These often-overlooked surveys could be among the most important indicators of how economies will fare in the year ahead.
Comment by Rolf Englund (webmaster):
This banking crisis is serious,