The DEBT BUBBLE and GREENSPAN.

Not that it matters (they are more-or-less "hand in glove"), but my view is that you have it backwards.

 

That's why the previous record credit expansion occurred during the economic boom times known as the Great Depression.

 

this chart is a few months old too....we are at 51 trillion in total credit market debt and around 14.3 trillion in GPD now which puts us around 356% of GDP. not good at all.

 

Looking at that chart, I find it hard to believe that credit expanded so much from 1929-1933. I assume the spike on this chart during those years is due to contraction of GDP.

 

You don't think that credit expansion was an attempt to reignite the economy? Or, the ratio is high because the denominator (GDP) shrank so much?

 

Do you have any reference to show that Greenspan as the Fed Chairman gets dictator-like powers?

 

I do believe the voice of Ronnie Reagan is speaking to us from the grave. Obviously we are not borrowing enough to allow us to spend enough to get this economy rolling, and start having fun again. We sure could use a few more real expensive wars in these hard times. Too bad. (a)Sap, George Bush didn't learn of your economic prowess in time to tap you for Treasury Secretary or Fed Chairman!

 

need a total war

 

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When the market or economy tumbles, he lower rates and floods it with money. Proclaimed a "Maestro" and leaves right before everything collapsed. I was shocked at this:

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Wow.

Of course he had helped from the other clowns:

"If we all join hands and go buy a new SUV, everything will be all right," Bob McTeer, Dallas Fed governor

"What we dearly want is for Americans to spend like Americans – to do the patriotic thing and go out and spend," Bill McDonough, head of the New York Fed, October '01.

 

Today's economic crisis is not Greenspan's fault ... if you're older than 20, somebody might say it's your fault ... Superficial analysis is ... easy