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

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To: Mark Adams who wrote (108869)6/14/2001 7:38:21 PM
From: GraceZ  Read Replies (1) of 436258
 
I thought out a few ideas on measuring the expansion of debt vs GDP- but now I'm having trouble with the basic concept.

If you were doing a company income statement and balance sheet you'd really get hell if you didn't separate out current liabilities from long term liabilities. It's the level of current liabilities that determine whether or not the debt is serviceable or not but it's the total debt against assets that determines whether or not you are getting a decent return on that debt. How do you do that when you are just looking at the total debt vs. one year's GDP? Some of that debt is really the same debt sold several times over. Meanwhile every last bit of it is an asset on somebody's books.....at least until it gets written off.
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