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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Oblomov who wrote (55264)1/8/2001 12:17:36 PM
From: Mike M2  Read Replies (1) of 436258
 
Ob, it is worth remembering that the net worth side of the equation has benefited from the credit orgy and will fluctuate but the debt side is fixed - it must be paid or defaulted upon. Another point about the expansion of debt/ gdp ratio - it tells us more debt is going to unproductive uses and greater leverage. When credit is used for productive purposes successfully it is self financing whereas credit used for consumption or leverage is not. mike.
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