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To: Jon Koplik who wrote (138535)	7/13/2005 10:35:01 AM
From: carranza2	Respond to of 152472

The idea was : it is a mathematical tautology that in an economic system with both a "public" sector and a "private" sector, if the government sector is borrowing heavily, then the private sector will NOT be borrowing heavily (and, the opposite, too). Interesting. We know that the public sector is borrowing like there's no tomorrow. We also know that lots of corporations are flush with cash [I'm a little iffy on the extent of this phenomenon, but assume it's true], but that the consumer is not saving and has instead gone on a spending frenzy. Thus, I would argue that there are actually three sectors--public, consumer, and corporate--which need to be analyzed. Two are spending irresponsibly, but I cannot say to a certainty that the corporate sector is making up for what the other two are doing. We also need to acknowledge that that a lot of our debt is being held overseas. How does all this get squared? Check this: iie.com