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

To: Chas. who wrote (102235)	9/20/2009 11:46:52 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 116555

There is a negative multi pier effect during a debt liquidation which is why they tend to be known as an economic depression. This is the price of incurring debt up past levels which can be sustained. It's a really foolish thing to do. Yet Americans set off on this course since 1981 and did not waver until we reached absolute excess. The good new is not everyone is over-indebted, even when you add the domino effects of bankruptcies causing bankruptcies. There remains many solidly financed businesses and consumers who provide the basis for the strong eventual strong economic recovery, after the profligate have eliminated their debt through bankruptcy and the imprudent have lost their assets. This new lower-cost and low-leverage economy has amazing resilience and growth potential. Attempting to hang on to they dying debt-sclerotic husk only delays this recovery by leaving these dying barriers in the path of those who can succeed. .