On September 5, 2008, Citi's Matt King wrote a report titled "Are the brokers broken?" which in its rhetorical question (the answer was and still is yes), implicitly explained why ten days later the world would experience the largest bankruptcy in the history of western civilization, crushing confidence in the financial system to this day, and forcing the Fed for five consecutive years to be the marginal source of credit money in a "not without training wheels" world in which the longer the central bank is the only backstop of anything and everything, and where failure and risk are prohibited through artificial means, the less faith there is in any and every financial counterparty. So when Matt King sat down to pen his latest warning in which he showed how the world is now "positioning for the wrong sort of recovery", we naturally listened. Below are the key charts which not only show the lifecycle of the source of every modern Keynesian empire's boom and best, namely debt, but why 5 years later, "the slate has still not been wiped clean."
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