Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

"Now, economists and stock market experts are floating the idea of a debt bubble, in which swelled levels of household and corporate borrowing force an already squishy economy into a longer-lasting, and more punishing, downturn.

Burgeoning household debt is a familiar story, closely watched by economists because they fear it will dampen consumer spending, which has been a vital bulwark against a deeper recession.

But as Federal Reserve Chairman Alan Greenspan and others point to revived business investment as a key to a sustained recovery, those growing corporate debt levels are receiving increased scrutiny: More money devoted to servicing debt means that much less for investment, and more debt overall means more skittish lenders."
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sarai...

This is exactly what I have been saying for over a year now, other than it leaves out the fact that there is zero incentive for businesses to spend money while there is so much excess capacity, very slow demand, and they are losing money hand over fist. I think consumer demand will continue to decline and there will be no recovery until it finally recovers which will be no time soon.

Thanks for the article.

mlsoft