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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: pogohere who wrote (109495)1/24/2011 12:41:48 AM
From: Hawkmoon1 Recommendation  Respond to of 110194
 
This doubling of existing credit levels could be achieved without increasing the risk of a major crisis, said the report from the WEF ahead of its high-profile annual meeting in Davos. (more)

What they don't mention is how that credit will be deployed into productive manufacturing..

If it's just involved in rolling over existing debt, without increasing economic output, then it's nothing more than a ponzi scheme aimed at kicking the can down the street and burdening taxpayers to service the sovereign debt.

Debt it FINE, if it can be serviced by profit margins that exceed the debt service. Sovereign debt never generates a profit.

Hawk