Reply #3: Thanks Ribo

[orwell]

Very good presentation with some charts I haven't seen before.

It seems pretty clear that this is a credit cycle expansion with some rather alarming characteristics. Some of the most telling are the lack of job and income growth, which should be expected with the global competition in labor against the backdrop of neoliberal economic policies.

The more alarming information was in regards to the explosion in consumer liabilities on their personal balance sheets. If there is a rather minor pullback of 10 to 20% in housing prices from the inflated levels we see today in some of the go-go markets, the liabilities will not go down, just the asset values. This could make this asset/liability mix look far worse.

Thanks again