hi all,
> .(I'm picturing a psychedelic Slinky, for some
> reason) of all forms of capital.
nice.
> The US stock bubble is the obvious
> example, but in fact all forms of debt have been growing faster than the
> GDP for some time. Total US debt, public plus private, is what, some 180%
> of GDP, and the figures for Central Europe and Japan are even higher.
> Maybe the US financial system, due to its history, uses market equity
> where East Asia and the EU use bank lending. The thing is, you can bail
> out banks, but bailing out stock markets implies the effective
> nationalization of assets -- a la China's buyup of reeling Hong Kong
> stocks last year. We can't have *that* in America, now can we.
now, i need somebody to explain to me - so, i'll pick on you dennis, since you mentioned it - why certain kinds of debt are 'bad for capital'. that is, why isn't debt just a highly effective from of discipline? i'm sure it's more than this, but how and/or why?
angela