> Each normal five-to-ten year business cycle in modern US history has ended with higher debt as a percentage of GDP ... This is because at the end of a long-te

> Each normal five-to-ten year business cycle in modern US history has ended with higher debt as a percentage of GDP ... This is because at the end of a long-term debt cycle, debt levels get so large relative to the size of the economy that it becomes impossible to deleverage them nominally The problem is not simply the debt, its also with how we measure GDP. NIPA is broken and counts ground rent, late fees, and interest on loans created for speculation on intangible assets as output rather than overhead. Generally prior to recessions when real GDP appears to be going up its really already dropping due to malinvestment and over-financialization. For instance during 1980s asset bubble in Japan corporations previously only involved in manufacturing started opening divisions to speculate in real estate and stock market.