I live in the USA and I am concerned about the future. I created this blog to share my thoughts on the economy and anything else that might catch my attention.
If we had kept this ratio at a sustainable 2.5 year level that it was in 1959 then there would currently be $32.2 TRILLION less "lifeblood" in our economy.
Credit is the lifeblood of market economies, and the damage to our economy resulting from the constraints on the flow of credit has already been extensive.
Here's another way to look at it.
ReplyDeleteIf we had kept this ratio at a sustainable 2.5 year level that it was in 1959 then there would currently be $32.2 TRILLION less "lifeblood" in our economy.
April 14, 2009
Four Questions about the Financial Crisis
Credit is the lifeblood of market economies, and the damage to our economy resulting from the constraints on the flow of credit has already been extensive.
Here's a bonus way to look at it.
ReplyDelete$32.2 trillion represents $228,500 per employed civilian.
I can't speak for others, but as for my share, um, well, the check is in the mail!
$32 T is an awful lot of debt , but I remember a Mr Larry Kudlow saying back in '06 that you have to put it in perspective by looking at net worth.
ReplyDeleteLessee here :
http://en.wikipedia.org/wiki/File:Net-worth-of-the-United-States.jpg
( Oops - guess Larry missed it on that call. )
Anonymous,
ReplyDeleteI think my favorite Kudlow quote is from 2007.
Three More Years of Goldilocks?- Larry Kudlow, November 21, 2007
Candy Mountain!
this http://www.nationalreview.com/corner/153626/bush-boom-continues/larry-kudlow
ReplyDeleteis what I think shows Kudlow to be a psychic medium. Note the date.
And my most favored quote out of that nincompoop is "The Bush Boom: The Best Story Never Told." !
http://ecx.images-amazon.com/images/I/41GHWqQ2lCL._SS500_.jpg
In Hell's Kitche (NYC),
ReplyDeleteHeckling Kudlow is a recurring theme on my blog. ;)
In Hell's Kitchen (NYC),
ReplyDeleteI lost your "n"!
Sorry about that.