Flow of Funds Report

There's always some interesting trends reveals by the flow of funds report. While F-TV talks of recovery and new bull market, they ignore the fact that total credit market debt as percentage of GDP at 362.5% remains only a small down tick from the all-time in 2009.03 of 372% and well above the second Great Depression high of 325%. This suggest that debt liquidation, a necessary precursor to the next secular recovery, has been minimal at best.

Total Credit Market Debt As A% GDP: