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Defationary collapse of a massive debt bubble != down-swing of the business cycle They look pretty much the same from the perspective of July 2010. What's the
by hugh3 16y ago
Defationary collapse of a massive debt bubble != down-swing of the business cycle
They look pretty much the same from the perspective of July 2010. What's the big difference?
- SkyMarshal 16y agoRoutine business cycle downswings don't require over a trillion dollars to prevent the economy from tailspinning into another Great Depression. If you add up the TARP and all the alphabet soup lending support programs, the stimulus package/s, and Fed's quantitative easing intervention, you're talking well over a trillion dollars, and we're still not out of it yet. This was a speculative debt bubble followed by the inevitable financial crisis. See Rogoff & Reinhardt. Definitely not part of the business cycle.