This is How Leveraged We Are

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.

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This entry was published on August 1, 2008 at 10:05 AM. It’s filed under Uncategorized and tagged . Bookmark the permalink. Follow any comments here with the RSS feed for this post.

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