Long Term U.S. Credit Boom Chart

April 27, 2012

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Two cycles of credit booms and busts exist: short term cycles, like those that propelled the savings and loan crisis in the 80s and the real estate boom and bust in the late 00s, along with long term debt cycles that take place in the backdrop.

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The solution to these mini busts is to dump cheap credit on the world, perpetuating a bigger debt buildup in the background. 

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