WSJ on wealth

[Carl Remick]

>>Other than stuff like that, go right ahead and compare away :-)
>
>That's all very nice, but what matters is ability to pay. If people
>borrowed against stock to buy a car, the debt remains even if the
>stock price is cut in half. Sure, there were few forms of consumer
>credit available 70 years ago - which means there's a lot more debt
>to contend with should things sour.

Let's not forget the recent words of The Man Himself, as cited on the World 
Socialist Web Site:  "In the course of a speech to the Economic Club in New 
York City January 13, warning about the possible consequences of a soaring 
stock market, Greenspan noted that fully one-fourth of annual economic 
growth in the US since 1996 — about one percentage point of the 4 percent 
growth rate — has come from the 'wealth effect' of well-heeled consumers 
spending more because of their rising investment portfolios."

Carl

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