Dousing the flames with gasoline

We are in the fifth year of recovery from the worst collapse of global financial markets in more than 50 years fueled by massive debt expansion, with non-financial debt rising as a percentage of GDP from 50% in the 1980s to almost 100% in 2008.

Household Credit Market Debt as % of GDP

Household debt subsequently fell to 80% of GDP during the GFC as households diverted income away from consumption to reduce debt. But now we are starting to see worrying signs: consumer debt is again rising as a percentage of disposable income.

Consumer Debt % of Disposable Income

Corporate bond yields have fallen to lows last seen in the 1960s.

Yields on Baa Corporate Bonds

Interest margins for large banks are falling

Large Bank Interest Margins


Yahoo: Steve Keen Interview

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