"If you see a train wreck coming....."

[HysteryDiagnosis]

August 6th PDB August 6th PDB August 6th PDB August 6th PDB August 6th PDB August 6th PDB August 6th PDB August 6th PDB August 6th PDB August 6th PDB August 6th PDB August 6th PDB

http://www.lewrockwell.com/yates/yates91.html
The Coming Financial Train Wreck
(A Tale of Peters and Pauls)
>>Congressman Paul cited the recent article by economist Frank Shostak, who provided a scary account of where household debt stands. The measurement of genuine prosperity is one’s permanent assets and savings. Today’s rates of personal savings are at Great Depression levels. Yet consumers spend, spend, spend. We are told by the pundits of the mainstream media and all the mainstream economists that this "helps the economy." I’ve encountered more than one statistic on America’s total indebtedness – the combined statistic for federal, state and local governments along with corporations and consumers. One source places our total indebtedness at $34 trillion – and rising rapidly. Another places it at $45 trillion – and rising rapidly. I wonder if anyone knows the exact figure!<<

[xchrom]

1. greenspan likes to tell us that the public

handles debt better than they used to.
not that debt is good, mind you, but that we handle it better.

yeah -- i like handling a lit stick of dynamite too.
sheesh -- what universe is this?

[phylny]

3. My husband and I are applying for a small home equity loan

to do some things. EVERY place we contacted wanted to up the amount. Not by a little, either, by a whole TON of money.

My husband told every one of them, "We do not look upon most debt as a positive thing."

Needless to say, we're going with a local bank (part of our drive to do give more business this year to the locals) partly because they accepted what we told them we wanted, and didn't try to get greedy.

[Rhiannon12866]

2. Great article! Thanks!

This is something that we all need to become much better informed about, so we can get the word out there!:-(

[ProfessorGAC]

4. One Problem With This Analysis

The total debt load (as described) is only 2x the total asset base of the U.S. economy. During the 1920's, the leverage ratio of the whole economy was nearly 4 to 1. So, this is nowhere near the situation prior to the Depression. And, that's using the higher figure of $45 trillion. If it's more like $34 trillion, the leverage ratio is <40% of pre-Depression values.

Not that i think huge debt is good. And, i think, from a macroeconomic perspective, gov't debt is far worse than industrial or consumer debt. But, there seems to be some hyperbole in this article. There's a huge difference between a train wreck and a flat tire.
The Professor

[The Zanti Regent]

5. But TV Preachers tell you to spend spend spend because Jesus is coming!

Yes, be totally irresponsible because JESUS is coming in a week or 2 to take HIS PEE-PULL away!

[WildClarySage]

6. Hey Poor, you don't have to be poor anymore!

Jeezus is here!

[HysteryDiagnosis]

7. He's always been here. People who are waiting for him, walk past

him every day. Pity.