Households are still paying off debts, businesses are starting to borrow moderately, the US Treasury is slowing their rate of borrowing.

Total borrowing in the U.S. is dramatically slower than any year since the mid 80’s with the exception of the lows in 2008/2009.  Even with high levels of US Treasury borrowing, the total borrowing has slowed as households have liquidated debts and businesses have cut back.  Recessions since 1970 have not started when borrowing relative to GDP has been so low.  In fact total new borrowing – including Treasury borrowings – is only 5% of nominal GDP today compared with over 30% of GDP in 2007/2008 going into the last recession.  Jeb Terry, Sr. Sept 24, 2011


Aberdeen Investment Management – a guide service for micro-cap technology investment

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