" wrote:

On Dec 31, 5:05 pm, jim wrote:

And once again there was a collapse in private credit.
Now once again private debt is shrinking and public debt is
expanding. It will be another decade before the credit market is
again back in balance so that the economy can move forward.

I am way more optimistic than you are. My guess is the economy will
be near normal in two years regardless of who gets elected.


Yes. You are way more optimistic, but not very realistic.

The private sector borrowed $4 trillion in 2007
That was 30% of GDP - that was the normal - back then - but
now its gone.

That frantic expansion of credit thAt was the normal 4 years ago is
not going to return for at least 70 or 80 years.

However, at its current trajectory, in 10 or 15 years, the
private debt will have fallen enough that productive credit
expansion (like was seen in the 1950's and 1960's) should
be able to resume.

http://comstockfunds.com/files/NLPP00000/517.pdf