While the U.S. economy may be in deleveraging mode right now, it’s always good to recognize just how far we’ve come as a debtor nation. This chart from Jeffrey Gundlach at DoubleLine makes that abundantly clear.
In terms of domestic credit market debt, the U.S. surpassed the pre-Great Depression heights by some point in the mid-noughties and just kept growing. In 2009, it was all the way up to 353% of GDP. And while it may have fallen since, due to defaults and foreclosures, It still is likely above the Great Depression highs.
Seems the deleveraging process will have a long way to go.
From DoubleLine (via Zero Hedge):