But now that ”peak” debt has been reached and the household leverage ratio has fallen back slightly to about 180%, what the Fed’s ministrations produce is only a tepid amount of GDP from financialization; that is, we get a dollop of GDP from the pointless churning of home mortgages—a financial engineering process that does not create new wealth, but simply siphons existing wealth into activity among loan brokers, appraisers and real estate attorneys that the BEA is pleased to call GDP.
