Financial Profits and Rising Debt Era

July 23, 2009 11:30am by Barry Ritholtz

Last week, we looked at the Total Credit Market Debt to GDP ratio. Here’s another variation of the chart showing, looking at 2 differing periods –pre-1981 and post-1981.

Note that as debt rises, so too did financial firm profits.

Low Debt Era vs Rising Debt Era

GMO chart via New Observations

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