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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (196319)	4/14/2009 6:48:32 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

>>Do not be the fool Mr. President; ask your "advisers" and those in your cabinet the following questions: * For each dollar of debt that is taken on, what delta occurs to GDP? Show your work and document it.<< This was a point that Heinz/Trotsky/Pater Tenenbaum used to hammer on (correctly, IMO) over and over, long before the current debtberg was commonly acknowledged....that the US economy had required incrementally larger amounts of debt to maintain diminishing GDP growth. It IS the reason that the current "reflation" scam is doomed (and is counterproductive, as the debt incurred will still need to be repaid, even though it will do no good). Maybe the slow the rate of GDP fall to 0-1 percent for a short time (a quarter or two), but then it will reaccelerate and be associated with other problems (commodity shortages) related to underinvestment and continually papering over the problems. A clusterfcuk, as it were.....