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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Ilaine who wrote (116140)8/8/2001 4:46:56 PM
From: Thomas M.  Read Replies (1) of 436258
 
Your position is that debt going up is bad

Wrong. Debt going up is good for the economy. This is what turned a small economic boom into a big one. What is bad is the overall level of debt being so large (relative to the economy, on a macro level, or relative to incomes or corporate cash flow, on a micro level) as to exacerbate the magnitude of the downturn, whenever it comes. The downturn is the "bad" part. The excess debt will most likely turn a small downturn into a big one.

Tom
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