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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (94260)	2/16/2009 7:48:46 AM
From: Little Joe	Read Replies (1) \| Respond to of 116555

And your point is???? lj

To: koan who wrote (94260)	2/16/2009 9:24:55 AM
From: Hoa Hao	Read Replies (2) \| Respond to of 116555

It also shows something I haven’t seen emphasized: the role of WWII in cleaning up private-sector balance sheets. During the war years there was very little private borrowing, thanks at least in part to wartime restrictions; meanwhile there was both strong economic growth and a lot of inflation. The result by the war’s end was a very low private debt level relative to GDP. How big a role did these improved balance sheets play in the fact that the postwar economy didn’t fall back into depression? I think you'll find that a lot of enforced savings/Gov borrowing went into capital goods; new factories etc. The Chrysler plant in Newark De started life as a tank factory I believe; they just shut it down end of December. I was amazed when I started reading up on the B-36 bomber project at how quickly they created the aircraft industry post 12-07-41. Post war, you had people's savings as well as the start of the modern credit boom. Guys came back from WW2, got married, bought a car, went to college, started families. We're off to the races culminating in our current dilemma of excessive credit creation.