Revolving Credit vs. Disposable Personal Income (Musical Tribute)

The following chart shows the 10-year moving average of the natural logarithm of the ratio of revolving credit to disposable personal income.<br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8hYJLAVqZM16w_pD4jovqVrzrW56Ypky-Zzg8gkMH5HpJDXf9QeGg0grCGrE-VCHd_ohxE5TWGWzFIm3orazncNSJcLqkPdPCrvNd4FOlTkBcHA8w2fqcvQoi0a7FYFE2g_1Y6jvK18U/s1600/Revolving+Credit+vs.+Disposable+Personal+Income.jpg" imageanchor="1"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8hYJLAVqZM16w_pD4jovqVrzrW56Ypky-Zzg8gkMH5HpJDXf9QeGg0grCGrE-VCHd_ohxE5TWGWzFIm3orazncNSJcLqkPdPCrvNd4FOlTkBcHA8w2fqcvQoi0a7FYFE2g_1Y6jvK18U/s320/Revolving+Credit+vs.+Disposable+Personal+Income.jpg" /></a><br /><span style="font-size: x-small;">Click to enlarge.</span><br /><br />When using natural logarithms, constant growth is seen as a straight line. We aren't seeing a straight line though. Instead, we're seeing a nearly perfect upside down parabola.<br /><br />Over the long-term, this particular growth engine is done. Stick a fork in it.<br /><br />The future's so bright I gotta roll over in symphony. (<a href="http://en.wikipedia.org/wiki/Sympathy">Pun intended.</a>)<br /><br /><iframe allowfullscreen="" frameborder="0" height="315" src="//www.youtube.com/embed/-cDozNJ2Oyw" width="420"></iframe><br /><br /><b>Source Data:</b><br /><a href="http://research.stlouisfed.org/fred2/graph/?g=mDf">St. Louis Fed: Custom Chart</a>

Revolving Credit vs. Disposable Personal Income (Musical Tribute)

The following chart shows the 10-year moving average of the natural logarithm of the ratio of revolving credit to disposable personal income...

Read more »