The Federal Reserve details the latest flow of funds for Q1:
Debt of the domestic nonfinancial sectors is estimated to have expanded at a seasonally adjusted annual rate of 3½ percent in the first quarter of 2010, 2¼ percentage points faster than in the previous quarter. Private debt contracted again in the first quarter, while government debt continued to expand at a rapid rate.The financial sector "shed" ~$1.3 trillion in debt (on an annualized basis) in Q1. Is anyone surprised the federal government added almost that same amount?
Household debt contracted at an annual rate of 2½ percent in the first quarter, the seventh consecutive quarter of decline. Home mortgage debt fell at an annual rate of 3¾ percent, a significantly faster decline than in the fourth quarter, while consumer credit contracted at an annual rate of 1½ percent.
Nonfinancial business debt was flat in the first quarter, after four consecutive quarters of contraction.Bank loans and commercial mortgages continued to decline, while corporate bonds and commercial paper expanded.
State and local government debt expanded at an annual rate of 4¼ percent in the first quarter, about the same pace as in the previous quarter. Federal government debt increased at an annual rate of 18½ percent in the first quarter, significantly faster than in the previous quarter, but below the pace seen in 2009 as a whole.
Source: Federal Reserve