![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-YEic1tK_yTih8UkBbGBOt-TFIxtyfOTB9STJ9cyidz4rY45cQj_PHhSDmDLh5TXiZQcWODhFSCWaq1hzgEqLOk_REyb2KMi9Gta77EQVXlChkMFePk3B2w_xQJVkUwtQQeNfsLgH8DK_/s400/Corporate+Debt+-+2007+-+Q2.jpg)
This chart shows the corporate debt outstanding as seen in the Fed's Flow of Funds Data.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhB2hAlQCr14iaRLCFvWeOPdMp5uflSwR67Tad_-tdaXSrRKEyYlgfv_zDZ2mDwRyoo32Ff-TCYO_Hg9zjTI0flZcGftN2cck-DbAQ0cK15HtbOaBEo-_H-jRrpktpKDfhIDzRQHAd-Cuh3/s400/Corporate+Debt+Velocity+-+2007+-+Q2.jpg)
This chart is showing the "speed" at which the debt is increasing. It isn't hard to see the effects of the last recession in this chart.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggcMUhDst-pcEqQY7yzvANd83CLkmcN7G-CrxUriNbJNAm16VsTdO8p0CGEBE8RZu11lPtIrKiUFo3_L0YRRAW-1N23AntUBodoI2HKZ-OopqI0IubLVGpfAFhTPM6PXSWBC0Ju6gMM6fz/s400/Corporate+Debt+Acceleration+-+2007+-+Q2.jpg)
This chart shows the rate of change in the "speed" at which the debt is increasing.
Source data and further commentary: Physics of Home Mortgage Debt
1 comment:
I made the same minor mistake in these charts (billions vs. trillions on the left scale) I made in the last ones. It is once again fixed.
So much for the theory that I can function in the morning. Why can't they release this data at midnight? ;)
Very embarrassing! Sorry about that.
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