Governments have – of course – dramatically increased their debt since 2008 to fund questionable actions.
But 141 years of history shows that excessive private debt in and of itself can cause depressions.
Private debt has also gone absolutely ballistic in China recently.
But it’s not just the U.S. and China …
The Telegraph reports today:
The International Monetary Fund (IMF) … said corporate debts in emerging markets ballooned to $18 trillion (£12 trillion) last year, from $4 trillion in 2004 as companies gorged themselves on cheap debt.
It said the quadrupling in debt had been accompanied by weaker balance sheets, making companies more vulnerable to US rate rises.