The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: TobagoJack who wrote (104475)	8/16/2009 4:04:26 PM
From: Elroy Jetson	4 Recommendations Read Replies (2) of 110194

The Great Depression was ended by time, which also ended all prior economic depressions. Bad investments have to be liquidated, consumption declines as an increased savings rate replaces deleted capital stocks. Unfortunately this takes time. The longer the credit bubble was which preceded the economic depression, the longer the economic depression lasts. Governmental spending, whether on welfare, public works, or warfare, replaces some or all of the reduced consumer and business spending. This makes the immediate effects of the decline in spending less severe, but at the cost of a drag on the economy later on. .

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