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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (55389)	11/2/2004 1:30:42 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 74559

Elroy, that debt chart doesn't worry me. Debt has only doubled from the lows and is only up 50% from quite ordinary levels. With the many management systems for debt, computer systems and fast reactions, quicker market clearing, futures and all sorts of controls, I can't imagine that the amount of debt is even a slight worry. Not for the overall financial stability of the world and the USA. Certainly there must be heaps of people who are going to go bust in financial crunches as they come along, but well-managed banks and others are going to be able to handle those crunches in their stride. To me, the big test was the Y2K bust. I really did think we could go into cascading collapse mode, but had decided a year or two before that Uncle Al would manage the situation and market clearing processes would be able to resolve debt in a timely way, so I didn't really think there would be a collapse of financial reset proportions [as Jay expects]. When the Twin Tower attacks were made in the midst of the process, I thought that could precipitate financial disaster, but there had already been 18 months of market clearing, so the extra shambles was manageable. All has gone according to plan, except that I thought the dip wouldn't take as long, nor be as deep in the Nasdaq department. Unemployment never really got going, interest rates were zoomed down in a timely way and are now coasting back up to normal levels. Money was pixelated, markets cleared. GDP continued to grow. To me, debt is excellent. It's a way of creating the future today. It's a way of rewarding those who have produced national wealth, rather than simply leaving it to their deadbeat children and grandchildren. Leaving the descendants debt rather than debt-free assets is an excellent idea. I built roads, water supplies, electricity supplies and a lot more besides. I should enjoy the benefit of that effort, not just be a human sacrifice to those who come after. I want to put my feet up and enjoy life, while the youngsters work to pay of the debt! Hooray for debt. But why isn't there more of it? Mqurice