Posted by: Dirk | April 12, 2013

Just one graph: does the stock market rise because of the rise in total debt?

fredgraphdjia

Advertisements

Responses

  1. Absolutely true, but even better is margin debt corelation and causation to stock market. Check it out from Steve Keen at business spectator. One is for Australia and one for USA, the important chart is Margin debt to DJIA. Corelation is 0.945
    http://www.businessspectator.com.au/article/2013/4/1/markets/greenspans-bullish-time-sell
    http://www.businessspectator.com.au/article/2013/4/9/australian-news/stock-secrets-hidden-margin-debt#ixzz2Q6gRtqAW

  2. The more important question is: does the economy grow because of the rise in total debt? Does economy fall with fall of total debt?

    Read Steve Keen on that too. Answer is yes. Very, very important. But how to talk about money, banks an debt when classicals are concerned only about goods and services?

    “Money, money, money, money makes the world goes around!” Was Liza Minnely more correct then the whole generations of economists?


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: