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

To: Jim McMannis who wrote (101115)	8/20/2009 11:51:48 PM
From: Elroy Jetson	1 Recommendation Respond to of 116555

You're correct in observing that America took a horribly wrong turn under Ronald Reagan. Now it's time to pay the piper for the excessive build-up in consumer and business debt. While the Clinton era did see a decline in the ratio of government debt to GDP, it was full steam ahead for the consumer and business credit bubble. This is particularly true of the period after the Asia Crisis in 1996 when Alan Greenspan became convinced he could pull Asia out of it's economic depression by goosing-up the spending of American consumers. Unfortunately no one at the time had the sense to slap him senseless. Everyone was too busy enjoying the "new paradigm" of a bubble in tech stocks. Since 1980 we've experienced and era of supply side nonsense that claimed "debt was efficient". Now we're in the era when folks will re-learn that "debt is dangerous". .