THE BUBBLE ALAN GREENSPAN COULDN'T SEE WITH ROUTINE DATA COLLECTED BY HIS ONE-TIME EMPLOYER, THE FEDERAL RESERVE

Since peak credit of fourth quarter 2007 of $1.134 trillion (deflated in FRBUs), loans and leases in bank credit of all commercial banks has fallen a whopping -46.31%!

Here is the bubble that Alan Greenspan claims he could not see during his reign as Chairman of the Federal Reserve of the United States. Not only did the bubble run from 1994 to 2006, but also the bubble continued into his successor's Ben Bernanke's reign.

Loans and Leases in Bank Credit, All Commercial Banks in gold window dollars.



Anyone who knows how to calculate the slope of a curve could see the rate of change in credit as time went onward.

After a steady level of credit between 1980 and 1990 and following credit decline to bottom in April 1994, credit took off in two massive stages, the first between April 1994 and January 2001 and the second, between January 2004 to April 2008. 

Anyone who dabbles in stock charts knows this pattern all-too well. 

If only Greenspan knew about Federal Reserve Bank Units, he could have calculated true credit using the FRBU deflator.

Federal Reserve Bank Units (FRBUs), or if you like better, Federal Reserve Buying Units are what circulate goods and services in the U.S.A. and elsewhere on earth.

As I show in WHY FUTURES MARKETS SHOULD SET THE FEDS FUNDS RATE RATHER THAN THE FEDERAL RESERVE BOARD OF GOVERNORS that through the brilliance of a futures market, Americans could safeguard their livelihoods for all time returning to freedom, returning to living among a people who get rich from earnest effort rather than political connection.