Extraordinary Popular Debt
By Bill Bonner – Rude Awakening Blog (10 Dec 2007)
“What has happened? Credit, it turns out, soon reaches the point of diminishing returns. During the entire period up until 1980, it took about $1.40 worth of extra credit to produce a single extra dollar of GDP. Since then, the ratio has deteriorated…with recent figures showing as much as $7 in new credit per additional buck of output.”
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