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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: kayco who wrote (122276)	7/7/2009 9:34:28 PM
From: Elroy Jetson	1 Recommendation Read Replies (1) \| Respond to of 206133

Preventing the level of consumer and business debt from rising to excessive levels, relative to income, is a concept which works. Recessions also work by reducing debt through bankruptcies and foreclosures. If you abandon these two concepts which work, you have created an economic depression for which there is no alternative - and that works too. Since Ronald Reagan took office in 1981 America has been on a course toward an Economic Depression as debt to income levels have rose consistently for consumers, business, and government. Prior to 1981 the debt to income ratio was stable. This isn't a mystery, it was simply a decision by many Americans to believe in some recycled bad ideas this time called "supply-side". The Reagan folks said "debt was efficient" but it was merely a credit bubble. Reagan's appointment of Alan Greenspan to the Fed was the icing on the cake. Living on debt feels great until bills come due, now it doesn't. The debt to income ratios will decline due to bankruptcies and foreclosures - that works. Government spending will continue to be needed to keep the economy functioning and keep people from starving as America deleverages. That works.