Re: For Trucker

I think both national debt and private debt should be included in
the gauging of economy. What's important is the overall health of the
economy, including both debts, not just the market value of various
assets, which as you indicated, can lose its value in a matter of
minutes.

When S&P lost 22% of its value, the economy might not suffer much.
But during the Great Depression, the crash of the stock market brought
down the whole economy. So saying "S&P500 index obviously do not
reflect a corresponding variation in the economy." is really not that
OBVIOUS to me.

Lastly, it does not need to have the government to BANKRUPT for the
economy to crash. The U.S. government did not go bankrupt during the
Great Depression, but the economy did crash.


>National debt should not be equated to private debt. An individual or
>firm can become bankrupt if it takes on more debt than it can service.
>The government can never become bankrupt. The government sells
>its debt when taxes don't cover spending, and that debt is a large part
>of the financial wealth of the private sector.

.

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