Thursday, 28 July 2011

We're at the fear stage of the debt bubble. ( chart )

This chart describes an investment bubble and is easily tweaked to describe a debt bubble too.  The belief that things can continue as they have - is in disarray.  The "return to normal" bump can be considered the premature conclusion that the recession is over.   When many people feel despair about getting what they are entitled to, entitlement reform will be undertaken.
Chart from The Reformed Broker.

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