Tuesday, September 23, 2008
One of the reasons the Financial industry is doomed to a decline
The chart above is one of the main reasons I think the financial sector will not do well at all. We can clearly see with this chart that consumers are already in debt, so the financial industry's growth they experienced since 1980 cannot be sustained anymore. Between 1980 and 2008, total household credit outstanding grew from $1.3 trillion to more than $14 trillion, a ten-fold increase!
As I have mentioned before, employment in Financial companies will experience a decrease.
Disagree? Agree? Drop me a line
Here's the link to that chart and the data behind it: http://research.stlouisfed.org/fred2/series/CMDEBT
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