Graph that Sums Up Crisis

Click Here:

It shows the growth of derivatives both in general and in comparison to the capital to back it up.  You won’t be surprised to learn that the capital did not grow while derivatives grew from less than $100 billion in 1992 to $1.8 trillion in 2008.   My guess is that false growth also fueled real growth; spending on consumables, college education, homes etc.  And all that real growth was therefore false too.  Before we can move forward all of that debt fueled false growth has to be excised from the economy.  Not fun.