Credit market debt helps explain slow recovery
Recent prognostications are almost unanimous that our economy will continue to grow, although at a slow to moderate pace. I'm currently in the moderate-or-greater-growth camp but check back for my quarterly update in the March 23 issue of the Business Report.
There is no doubt that the U.S. recovery will be long and slow. That is obvious by looking at the graphic here of total credit market debt as a percent of GDP. Total credit market debt includes both private and public debt. The graph goes back to 1952 but a graph going back to 1925 can be found at http://comstockfunds.com/files/NLPP00000%5C292.pdf. The ratio was about 160 in the 1920s, increased to 260 in the Great Recession and dropped to about 130 by 1952. That was the low, at