The Scariest Chart Ever

Jan. 20, 2009 1:42 PM ET177 Comments
Todd Sullivan profile picture
Todd Sullivan
7.39K Followers

If this doesn't give you pause, nothing will. From East Coast Economics:

Here is a chart of borrowing by U.S. banks from the Federal Reserve through Dec. 2007:



Now, same chart through December 2008:



Anyone still think there are not some rough patches down the road?

Editor's note, 1/29/09: The original version of this post indicated that the charts show 'federal borrowing', and not borrowing by banks from the Fed. That has been corrected here.

This article was written by

Todd Sullivan profile picture
7.39K Followers
Todd Sullivan is a Massachusetts-based value investor and Co-Founder and General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer supports his original thesis. His blog features his various ideas and general commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain's NY and others. He has also appeared on Fox Business News and is a RealMoney.com contributor. He has twice presented at Bill Ackman's Harbor investment Conference and is a regular presenter at the Manual of Ideas "Best Ideas" conferences. Visit his sites: ValuePlays (http://valueplays.net/) , Rand Strategic Partners (http://randstrategicpartners.com)

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