Evidence of tighter financial conditions, Total Business borrowings slowed markedly. Yet percentage growth rates don’t do later in a Credit Routine justice. 1.180 TN, almost exactly like Q2. 210 billion) during Q3. 389 billion. Foreign U.S. 11.367TN) because the end of 2007. Treasuries ended the quarter at 84% of GDP, up from 41% at the conclusion of ’07. And let’s not overlook the government-sponsored businesses (GSEs). 263 billion, or 3.0%, over the past year.
1.450TN y-o-y), or 128% of GDP. 95.057 TN. Total Securities finished the quarter at an archive 460% of GDP. This comes even close to previous routine peaks 379% (Q3 ’07) and 359% (Q1 ’00). Securities market inflation continuing to inflate Household Assets during the quarter, while the Bubble in Household Net Worth remains fundamental to the U.S.
8.810 TN (7.6%) within the last year. Still, most would dismissively ask, where’s the Bubble? 50 TN (85%) since the end of 2008, which includes supported elevated self-confidence certainly, spending and financial activity. And it’s clear that flourishing securities marketplaces have been integral to the record enlargement in Household recognized wealth.
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So, what have been the driving pushes behind bubbling marketplaces? Rest of World (ROW) holdings of U.S. 3.830 TN over seven quarters. 5.639 TN) to summarize 1999. Where in the world has all this “money” been via? ROW holdings of U.S. 13 billion. On the other hand, ROW holdings of Total U.S. 3.225 TN in Q4 ’07). The jump in Equities holdings masks a pivotal slowdown in ROW buys of U.S. Debt Securities. Though purchases were positive during Q3, ROW holdings of U.S.
190 billion through the first three quarters of 2018. This contraction in ROW U.S. The y-t-d contraction in ROW U.S. 174 billion contraction in U.S. 348 billion in 2016. Indeed, ROW U.S. I’d posit that tensing global finance – in particular, the de-risking/deleveraging dynamic that took hold in the speculator community – added to waning international demand for U.S. Corporate Bonds. At exactly the same time, EM outflows and pressure on EM central banks to aid faltering currencies resulted in sharply lower international demand for Treasuries (not to mention geopolitical frictions). Overall, it points for an important inflection point in international financial flows into U.S.
For much of the year, major flows into outperforming U.S. With U.S. equities succumbing to de-risking/deleveraging, markets will now confront momentous changes in the liquidity backdrop generally. If the market liquidity environment has transitioned, the lackluster growth in U.S. Bank or investment company credit now becomes a more pressing issue. 393 billion during Q3 (only two weaker quarters before five years).
