Chart Of The Day

The Slowing De-leveraging….

I’ve long predicted that the balance sheet recession was likely to come to an end somewhere around 2013/2014 and it looks like the de-leveraging process in the USA has certainly slowed.  This excellent chart from Morgan Stanley (via Joe W) shows how the de-leveraging has improved over the years.  Unfortunately, we’re not quite at a point where the public sector can hand off the baton yet.  We still have some work to do so we’re likely looking at something closer to a 2014 hand-off of the baton.  Of course, that’s assuming the fiscal cliff doesn’t torpedo the private sector recovery right when it looks like it’s starting to catch its footing….

Source: Morgan Stanley via Joe Weisenthal

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