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MrRodgers -> RE: U.S. debt load falling at fastest pace since 1950s (6/8/2012 2:41:27 PM)
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ORIGINAL: Arturas
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ORIGINAL: Owner59
No way......the con talking points say that our debt is growing...President Obama`s fault yada yada.....
"WASHINGTON (MarketWatch) — Everyone knows America has too much debt. What they don’t know is that things are getting better, not worse.
Little by little, our economy is reducing its debt burden, slowly repairing the damage caused by 10, 20 or 30 years of excess.
If you want to know why economic growth has been so tepid, here’s your answer. Four years after the storm hit, the economy is still deleveraging. And it’s very hard for any economy to grow when everyone is focused on increasing their savings.
Total domestic — public and private — debt as a share of the economy has declined for 12 quarters in a row after surging over the previous decade.
The rapid rise in federal debt over the past four years has distracted us from the big picture. The level of public debt is indeed worrisome, but it’s not as big a worry as the economy’s total level of debt — public and private.
Although we have a whole cottage industry devoted to warning us about the dangers of too much public debt, we don’t have any comparable Cassandras telling us about the dangers of too much private debt. Yet the history of the past 30 years (or 300) clearly shows that too much debt, of whatever variety, can pose a systemic risk to the national and global economies.
As much as we hear politicians, pundits, tea-party patriots and the Congressional Budget Office obsessing about government debt, it was excessive private debt — not public debt — that caused the 2008 financial meltdown"
Yes. Personal debt bankrolled by easy Mortgages caused the 2008 meltdown. Easy mortages were caused by the Frank Barney, democrate, with Clinton's support; remember the newspaper articles in early 2007 writing about how new homeowners were scared their one year ARM was about to reset and their payment triples? The Demos were behind that in order to buy votes from those who could not buy a house otherwise.
That was then. Now, excess public debt and spend, spend policies and a crazy and Unconsitutional heath care plan that is anti buisness and therefore anti-jobs have frozen economic investment.
Not to worry, the Supreme Court announces their rulling by Monday nailing another nail in a sad and failed Presidency and come November the President goes lame duck and is replaced. Finally, the Democratic party purges the extreme left and comes back to a centralist policy and fields another Clintion in 2016 and by then we are not whole but where we should be.
P.S. if you can hang on. I know many are on the dole and getting ready to be pushed of it and are sweating some real economic issues and maybe even homelessness. It's getting desperate for some now as unemployment funds run out. I see whole families begging on the corners now and people getting groceries on a bicycle in dense traffic. This is a sign of more things to come before it gets better and better is not what it was before but how it will be now, back to a pre-industrial economy unless the GOP can actually reduce the debt, clear out excess repo'ed houses, entice business reinvestment with the lure of very cheap energy.
Some great right wing talking points almost none of which including our need for a '16 Clinton is true. Clinton and pals had nothing to do with fraudulent mortgage lending. Housing debt is different that consumer debt, is cars and credit cards...retail sales. Easier mortgage lending though could put maybe 2 million back to work.
1960 total debt service (interest) was 6% of GDP
2010 total debt service...30% of GDP. Get the picture...capitalism is debt and we will see a whole lot more of it.
Capitalism is turning paper into money, speculating on the value of that paper and when necessary....obtain a completely fraudulent AAA rating on your new 'shit' paper. That's what caused the meltdown...greedy capitalist scum on wall street not the individual house buyers.
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