Patrick Doherty, Open-Market Sustainability, The Solutions Journal, Volume 3, Issue 1, January 2012, Pages 77-89 (https://www.thesolutionsjournal.com/article/open-market-sustainability/) Abstract: The modern economy experiences two types of cyclical debt cycles: the short-term business cycle that produces the familiar oscillation between expansion and recession, bull and bear; and the long-term debt cycle that we are experiencing now. During the 75-year period of these cycles, the debt-to-income profile of the entire economy gradually builds up a stock of household, corporate, and government debt that income is insufficient to service. The credit reset from indebtedness to balance is called a deleveraging. The present American deleveraging started in 2007–2008, as rolling mortgage defaults undermined a system of extraordinary household and financial-sector leverage, triggering a shift in debt from the financial sector to a debt-burdened federal sector, through fiscal and monetary bailouts. Household debt—from both consumer and mortgage sources—remains high at a time of high unemployment (8.6 percent at the time of writing). This, in turn, drives household-level … Topics: Built Capital; Economy; Security; Sustainability; Transportation