>Not because of a debt burden, there is nothing wrong with long term public sector debt financing. To an extent... >The problem is the asset bubble in home ow

>Not because of a debt burden, there is nothing wrong with long term public sector debt financing. To an extent... >The problem is the asset bubble in home ownership prices. I just want to point out that these two are, are somewhat tied together as of the recent decade. A lot of central banks around the world have been doing QE type things, which consists of printing money in exchange for taking assets off the market in (supposedly) equivalent value until they (central banks) are repaid the printed money to destroy. This arguably causes inflation - not in the traditional sense, but in the form of asset price bubbles. The reason they're doing this stuff is because of the lack of liquidity in the market regarding financing debts. In the US in particular, a large part of the FED's balance sheet is composed of mortgage backed securities (houses) and government debt (bonds) which money was printed for... Anyhow, the point I’m trying to make here, is that the public debt burden we have is a contributing factor to the asset bubbles we see in housing and stocks and other areas...