From the Federal Reserve Flow of Funds Accounts as of June 11, 2009 (see here for downloading options):
1. The credit market meltdown struck with full force last September 2008 and got a lot worse in the first quarter of this year:
- Open market paper: Collapsed at an annual rate of $662.5 billion.
- Banks lending: Credit markets collapsed at a rate of $856.4 billion per year.
- Non-bank lending: Pulled out at the annual rate of $468 billion.
The only major borrower was the government at $1,442.8 billion of available credit. As comparison, total net borrowing by households in 2006 was $1,185.5 billion. This past quarter by households comes in at $ -151.8 billion. (Yes, minus)
2. In U.S. households alone, the losses have been massive:
- $1.39 trillion in the third and fourth quarters of 2007.
- $10.89 trillion in 2008.
- $1.33 trillion in the first quarter of 2009.
Total: $13.87 trillion in all. The worst of all time.
Bottom line: The first quarter of 2009 brought the greatest credit collapse of all time.
Disclosure: No position.