A credit crunch coming soon

Hints of an imminent credit crunch in the U.S. and Canada are piling up.

Too much debt in commercial real estate, residential real estate, credit card balances, personal loans, mortgages, builders’ construction loans and even governments could trigger a crisis of failure to repay debts.

This chart shows U.S. private sector debt since 1834 and it’s obvious that we are in unusual times. The current private sector debt as a percentage of GDP is higher than immediately before the start of the Great Depression in 1930!

Read more....