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We value companies at 10x their annual revenue and beyond. A country like the US is surely worth decades of its GDP at least. It won't be in the red at 200% deb
by teaearlgraycold 4y ago
We value companies at 10x their annual revenue and beyond. A country like the US is surely worth decades of its GDP at least. It won't be in the red at 200% debt to GDP.
- qeternity 4y agoThis is really inaccurate. TFA is just referencing public debt. If you want to treat the US like a company, you should include private debt as well. If we do that, you will end up with a figure that is 5-10x GDP (depending on what you include). Then for some reason you're comparing 10x valuations with debt loads...which aren't comparable in the slightest. Do you know how many companies have outstanding debt at 5-10x their revenues? Go look at most major debtors and you will find they have debt loads under 1x revenues.
- teaearlgraycold 4y agoFair enough