Monday, September 27, 2010


(click on image to enlarge)

Everybody, or most everybody, knows there has been a financial bubble based on credit and real estate. The elevator is going down in ways which have not occurred since the Great Depression. The private debt to GDP ratio has fallen 31 points since the high of February 2009.

As can be seen in the above graph, farm loans based on real estate rose at the same rate as real estate loans altogether (farm loans are on the right axis). The bubble will have to deflate considerably before anyone can breathe easy.

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