it's not going to kill the economy, but it will sting a bit. and consumer debt has come back to bite us in the ass more than once. right now, debt is on the rise as people are using credit to tide them through this tough time, if things don't improve soon, that strategy quickly runs out of headroom. it has happened before and usually results in a marked decline in spending.
as for the stock bubble... i would say a 60% decline in the nasdaq is proof positive that things got out of hand. bubbles are a fact of the economic cycle because they are inherent in human nature, making sure they don't kill the economy when they burst is the tough part. we have seen the collapse of numberous bubbles in the last 20 years.
I really shouldn't read this board, it's useless. everyone is more interested in how well you can spin than in getting at the truth or making real progress.
By the way, statement like:
"I know its a valid argument, but the consumer-debt-will-kill-the-economy thing has been trotted out consistently since 1980, and there's really never been any sign of life to it...
and
Kinda like all those guys who have been bitching about a "stock bubble" for 20 years, and finally see the 2000/2001 bear market, and try to say "See, I was right all along..."
they make u sound (through generalizations and presuppositions) like you know what you are talking about when you clearly have no background or detailed knowledge of this area.
yes, the economy will survive, it always does, but there will be some pain the interim. |
