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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: Freedom Fighter who wrote (673)8/26/1998 8:33:00 PM
From: porcupine --''''>  Read Replies (1) of 1722
 
Very nutritious food for thought, Wayne. David Tice in a recent Barron's guest editorial touched on a controversy as old as the beginnings of industrialism: Does the production process generate enough income to buy back the goods and services produced? Or, must consumers and businesses go ever deeper into debt to keep a given economic upcycle on course (in which case, upcycles are inherently self-limiting)? Or, is the increasing debt level of an ongoing expansion only a matter of the tendency of credit standards to be relaxed as the good times roll on? If the latter, then presumably expansions are not necessarily self-limiting.
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