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

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To: porcupine --''''> who wrote (1201)2/7/1999 10:53:00 AM
From: Freedom Fighter  Read Replies (1) of 1722
 
Is GDP Growth Always a Good Sign?

I have one minor point on this issue. GDP growth can come from two sources. One is the reinvestment of savings and profits. The second is from credit creation beyond those savings. There is difference between the two. For a variety of reasons the former is a good thing and the latter can cause excess, boom, bust, misalloaction etc...

Here's an interesting link that discusses the recent boom like action of the U.S. economy.

prudentopinion.com
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