JVB-BSullivan-Econ-Comment-092109

Broker Dealer / Institutional / Advisor Use Only September 21, 2009 ABOUT Highlights of the 2Q09 Flow-of-Funds BILL SULLIVAN The Federal Reserve Board’s Flow-of-William V. Sullivan, Jr. No doubt partly reflecting tightened serves as Chief Economist Funds report for the second quarter of 2009 lending standards, households reduced at JVB Financial Group, continued to portray a financial system that consumer-related borrowings at a $166.8 working closely with the was undergoing an historical adjustment. billion annual rate. Even with these firm’s trading desk, Indeed, for the second quarter in a row the liquidations, households still maintained providing analysis and commentary on the U.S. private sector paid down outstanding debt an overall debt loan of $13.7 trillion economy and the financial while all of the borrowing that took place during the second quarter. Total debt markets. Among his duties during the three month period under review now exceeds wages by $6.4 trillion. To are authoring a weekly was government-related. Listed below are provide perspective, five years ago, total report on credit market some of the highlights of the Fed’s latest trends and maintaining a debt exceeded salaries by only $4.3 regular schedule of quarterly report. trillion, suggesting that a visibly larger conference calls that focus share of household budgets is now being on interest rate • Despite the worst recession in nearly directed toward debt service expense ...