US Prospects (Jim O'Connor)

[Barbara Laurence]

Doug, could you or someone explain why retiring equity with debt at a rate
of 2 percent of GDP per year "implies" that the debt issue of households
and corporations equals 7 percent of GDP.

If corps were turning equity into debt at 2 percent of GDP yearly, in less
than four years corporate debt alone would equal 7 percent of GDP, no?

And where does the 7 percent number come from, in the first place?

Thanks for any help[,
Jim O'Connor