tag:blogger.com,1999:blog-3448927642739850334.post8943038019906412387..comments2023-10-29T08:06:00.610+00:00Comments on The Political Economist: Graph(s) of the week: DebtVuk Vukovichttp://www.blogger.com/profile/01878567452492217960noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-3448927642739850334.post-2641233746483492462012-03-11T16:03:47.716+00:002012-03-11T16:03:47.716+00:00@Charlie - it does indeed look gloom, but the priv...@Charlie - it does indeed look gloom, but the private sector can and will eventually restructure with not necessarily big losses. For more on the corporate balance sheet restructuring, I recommend this <a href="http://www.voxeu.org/index.php?q=node/7692" rel="nofollow">good text</a>. <br /><br />@anonymous - yes, they are, but they accumulated during the pre-crisis growth. As for the increase in debt after the crisis, you are referring to government debt, which isn't pictured here. Government debt did rise as a consequence of bailouts and higher deficits (less revenue from taxes due to failing housing and construction industries, and higher expenditures due to more unemployment benefits), but the private sector accumulated its debt mostly before the crisis.<br /><br />@John - that's true, thanks for pointing that out.Vuk Vukovichttps://www.blogger.com/profile/01878567452492217960noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-46151364719760685982012-03-10T12:36:05.468+00:002012-03-10T12:36:05.468+00:00It seems that the financial corporate sector debt ...It seems that the financial corporate sector debt was adjusted to remove foreign owned debt, so that actually is only the debt held domestically, which is amazingly highJohn Turpinhttps://www.blogger.com/profile/03146853575797586917noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-24423876158441023652012-03-10T11:19:38.450+00:002012-03-10T11:19:38.450+00:00you say that pre-crisis growth was driven on debt,...you say that pre-crisis growth was driven on debt, but aren't these current debt levels? Didn't all these countries experience a big increase in debt after the crisis had already started, and mostly because of it?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-81641248826421064572012-03-09T10:12:36.905+00:002012-03-09T10:12:36.905+00:00from the British perspective mostly, but Europe no...from the British perspective mostly, but Europe nor the US aren't far behind this negative scenario..Charlienoreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-7053046248984748752012-03-09T10:10:02.241+00:002012-03-09T10:10:02.241+00:00this is terrible.. What can the private sector do ...this is terrible.. What can the private sector do to fix this? I can only imagine massive lay-offs, big losses (both company losses and on mortgages), and years of destabilization uncertainty and low confidence.<br />Does this mean the recession is far from over? Cause it all looks really gloom to me...Charlienoreply@blogger.com