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Posted by: Dirk | April 12, 2013
Just one graph: does the stock market rise because of the rise in total debt?
Posted in Economic History, Just one graph, Macro, US
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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
By: Jordan on April 12, 2013
at 4:50 pm
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?
By: Jordan on April 12, 2013
at 5:33 pm