Thursday, December 31, 2009

Chart of the Decade

On the last day of the decade it seems appropriate to post a chart that summarizes the financial condition of the country over the past 10 years. I agree with Felix Salmon (who I have to think for the pointer) and I think this chart really nails the extent of the craze that was the credit binge that originated at the end of the 90s. As an economics-minded individual, America dipping into the negative is the best indicator that our outlook for the long-run is strong. [That is because as a net saver, borrowing costs will be reduced which will increase investment and, subsequently, jobs and economic growth.]
Note: this table is drawn from a data set that includes borrowing by domestic hedge funds, but the overall picture is the same without that driver.
Pointer to Mike Mandel with his four statistics of the decade.