在一个债务周期的早期，债务增长速度基本上和收入增速一致，大部分债务进入

In a cycle of debt early, the growth rate of debt and revenue growth is basically the same, most of the debt into the real economy, resulting in a rapid revenue growth. This phase of the US economy looks very good. Economic growth is maintained at 3% to 4%, the unemployment rate below the long term average, between 4% to 5%, inflation is between 2 to 3.5%. The Fed's goal is growth and inflation, rather than debt growth. This time the federal funds rate from 1% in 2004 to 5% in 2006. Between 2004 and 2006, house prices rose by 30%, and in 2000 rose 80% compared to ten years which is the biggest house price increase after World War II. In the real estate bubble formation, began a self-loop. Suppose a family with $ 50,000 to pay a $ 250,000 house down payment, then house prices rose from 250,000 to 350,000, double the investment of the family. It also brings a higher proportion of loans, more people enter the real estate market.

In the early stages of a debt cycle, debt growth was essentially in line with income growth, with most of the debt entering the real economy, generating rapid income growth. The U.S. economy looks pretty good at this stage. Economic growth remains at 3 to 4 per cent, unemployment is below the long-term average, between 4 and 5 per cent, and inflation is between 2 and 3.5 per cent. The Fed's goal is growth and inflation, not debt growth. The federal interest rate rose from 1% in 2004 to 5% in 2006. Between 2004 and 2006, house prices rose by 30 per cent and by 80 per cent compared with 2000, the biggest increase in post-World War II prices in a decade. In the formation of the real estate bubble, began a round of self-circulation. Suppose a family pays a down payment of $50,000 for a $250,000 house, and then the price rises from $250,000 to $350,000, doubling the family's investment. This also leads to a higher proportion of borrowing, more people into the real estate market.

In the early stage of a debt cycle, the growth rate of debt is basically the same as that of income. Most of the debt enters the real economy and generates rapid income growth. The U.S. economy looks very good at this stage. Economic growth remained between 3% and 4%, unemployment was below the long-term average, between 4% and 5%, and inflation was between 2% and 3.5%. The Fed aims for growth and inflation, not debt growth. During this period, the federal interest rate increased from 1% in 2004 to 5% in 2006. Between 2004 and 2006, house prices rose by 30% and 80% compared with 2000, the biggest increase in house prices since the Second World War. In the formation of the real estate bubble, a self cycle began. Suppose a family pays a down payment of $250000 for a house worth $250000, then the house price rises from 250000 to 350000, and the investment of the family doubles. This has also led to a higher proportion of borrowing and more people entering the real estate market.