Clown-Free Zone... sorry, no clowns allowed Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ilaine who wrote (108756)	6/14/2001 12:04:04 PM
From: yard_man	Read Replies (2) of 436258

I think the aggregate and the information for individuals sectors are both important. I was trying to answer your counterpoint -- a reasonable question -- are all increases in debt necessarily bad? What I tried to say is: Of course not! Debt taken on in pursuit of a potentially profitable venture is good ... I think you need to look at both the current conditions and expected future conditions to make that assessment. Also there are counter-examples to what might be shown in aggregates ... Corrigan's point is that the debt taken on has been increasing at a rapid pace with precious little to show for it if one looks at GDP increases, three years running and that this has been the case for a while as issuance of new debt has accelerated ... that's it in a nutshell -- you can question whether he simply "hasn't waited long enough" for the GDP to kick in and feel the effects of all that borrowing or you can look an intermediate trends in GDP growth (my preference) and say that there is a problem. You can also question whether he is looking at the right ratio, using the proper time period for the running sum, whether he has bad data or what? I believe Corrigan thinks and I somewhat agree that these numbers are bad on the face of things ... I expected valid criticisms might lie with some particulars of his method or someone might point to public spending (Kyros did this earlier I think) or something else. How long would you give GDP a chance to resume growing or catching up? The main point is this borrowing is not going into new capital equipment -- it is servicing a lot of new consumer debt and helping corps make ends meet until they get over a supposed short-lived rough patch.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next