U.S. Total Credit Market Debt by Sector: 1929-2008

Nice chart from Morgan Stanley breaking down total U.S. credit market debt as a percentage of GDP since 1929. The differences in the debt’s composition from the 1930s to today are striking, with households, not corporates, being the credit problem children today. 



  1. The household debt problem is that it has grown faster than household income. In roughly the last 25 years, household income has doubled once and household debt has doubled three times for an eightfold increase. Quick-fix stimulus programs do not address the fundamental need for household de-leveraging. The way back to financial solvency will be long and painful. Adding massive government debt only makes the situation worse.
    Financial illiteracy is the most expensive thing in America!

  2. NoeValleyJim says:

    Can we get a more recent chart of this data, now that debt/GDP has been fallling?