Courtesy of the St. Louis Federal Reserve Bank, here’s a graph of bank borrowings from the Federal Reserve over time, up to 2008.
What does this mean? It means that despite reassurances that the current “recession” is a momentary blip, we are in fact in an economic downturn despite attempts to stave it off using unsustainable leveraging. It also means the dollar will be falling further, which means U.S. startups will be much cheaper (and more attractive) to invest in for foreign funds.
