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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: blazenzim who wrote (32529)	4/7/2008 7:36:29 PM
From: gg cox	Respond to of 219680

Message 24477139

To: blazenzim who wrote (32529)	4/7/2008 7:41:08 PM
From: Moominoid	Read Replies (2) \| Respond to of 219680

US GDP is a mirage. If I borrow $100k on my phony home equity and go on a spending spree, then that counts as $100k added to gdp. Not generally true. If you spend it all on imports then there isn't one cent added to GDP. In the short-run this kind of spending can increase GDP (when spent on domestic products) due to fostering some real economic activity to produce/sell the products to you. When the bank writes off that $100k loan, that doesn't subtract from gdp. I think that is wrong too, unless you can show that the GDP measure of corporate profits excludes write-offs.