From Mike Norman Economics:
Chart below that depicts leading US Treasury spending vs. SP500 Sales vs SP500 earnings over the recent long term in time domain.
Of interest is the linearity in the growth of both Treasury spending and SP500 sales over the time period leading up to the "GFC" in 2008, about from the years 2001 thru 2007.
While if we look at the below chart depicting the growth in the Fed's H.8 Loans and Leases in Bank Credit over this same time period that we showed here last week, we can see the NON-linearity of the growth in the establishment of these balances over this same time period.
So even though bank credit was growing exponentially, we can see no exponential growth in sales by firms over this same time period.
This observation might make one want to wonder: "Where did the money go?"....MORE