Govt spending straight up - the stock market straight down.
#2 is not govt borrowing. it has been presented as that before.
#2 is “TOTAL BORROWING OF DEPOSITARY INSTITUTIONS (IE BANKS) FROM THE FEDERAL RESERVE”.
It peaks at $700bn, which is also the amount that banks were “bailed out” by.
So:
1) banks borrowed $700bn from the FED
2) banks couldn’t repay
3) the US taxpayer paid them so they could repay the FED.
The bank bailout ALL went to the FED, is what that chart says.