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To: neolib who wrote (150327)	9/25/2008 2:42:59 PM
From: XoFruitCake	Respond to of 306849

"I don't believe the bold section above. You can clearly structure an economy with zero credit. It would likely have slower GDP growth than one with credit. It would likely be a more stable system as well." I think you can..Sort of like some business in 3rd world country where there is no bank. So either the business survive of it's own cash flow or it won't exist. But the business growth will be super slow and the price of good will have to be extremely high to make business profitable (or at least survive).I thought someone get a Nobel price for creating a microbank in Africa that finance really small business ($20 to $30 loan at a time). . It is the age old problem of those has money don't have a good business idea and those has a good business idea don't have access to money.. And the capital market supposedly bring the two together and create a society that is both profitable for both groups and consumer can get goods that are priced lower than otherwise. Without financing, we may have one grocery chain (since the second one cannot live on their initial cash flow and no one will finance them), one movie theatre chain, only one brand of PC etc... I don't think it is really that good?? could it be??

To: neolib who wrote (150327)	9/25/2008 3:39:32 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

I don't believe the bold section above. You can clearly structure an economy with zero credit. It would likely have slower GDP growth than one with credit. It would likely be a more stable system as well. chris martenson's crash course site has a segment of 'what price growth' and he makes the basic argument that over-levered 'growth' (debt) is false growth and causes mis-allocation of capital that eventually leads to speculative excess (as of course has been amply demonstrated) and that stable, sustainable growth is the best way to strong economy