Comments on: De-leveraging http://www.creditwritedowns.com/2008/06/de-leveraging.html a finance news and opinion site Mon, 22 Mar 2010 08:58:45 +0000 hourly 1 By: Jacob Sakihttp://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-8192 Jacob Saki Sun, 26 Apr 2009 21:22:05 +0000 http://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-8192 My website has lots of information to benefits any small business person in: US and Canada.<br>I strongly recomend check my name at google, just type Jacob Saki and find tons of information available on the internet. Good luck ! My website has lots of information to benefits any small business person in: US and Canada.
I strongly recomend check my name at google, just type Jacob Saki and find tons of information available on the internet. Good luck !

]]> By: Jacob Sakihttp://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-8191 Jacob Saki Sun, 26 Apr 2009 21:20:43 +0000 http://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-8191 My website has lots of information to benefits any small business person in: US and Canada.<br>I strongly recomend check my name at google, just type Jacob Saki and find tons of information available on the internet. Good luck ! My website has lots of information to benefits any small business person in: US and Canada.
I strongly recomend check my name at google, just type Jacob Saki and find tons of information available on the internet. Good luck !

]]> By: Jacob Sakihttp://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-4885 Jacob Saki Sun, 26 Apr 2009 17:22:05 +0000 http://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-4885 My website has lots of information to benefits any small business person in: US and Canada.<br>I strongly recomend check my name at google, just type Jacob Saki and find tons of information available on the internet. Good luck ! My website has lots of information to benefits any small business person in: US and Canada.
I strongly recomend check my name at google, just type Jacob Saki and find tons of information available on the internet. Good luck !

]]> By: Jacob Sakihttp://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-4884 Jacob Saki Sun, 26 Apr 2009 17:20:43 +0000 http://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-4884 My website has lots of information to benefits any small business person in: US and Canada.<br>I strongly recomend check my name at google, just type Jacob Saki and find tons of information available on the internet. Good luck ! My website has lots of information to benefits any small business person in: US and Canada.
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]]> By: Sigmund Kriegerhttp://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-659 Sigmund Krieger Fri, 21 Nov 2008 15:59:10 +0000 http://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-659 Deleveraging is currently a good. If assets have to be sold to pay down the debt that was used to acquire the assets, so be it. If that slows the economy, so be it. To the extent that the government tries to interfere with the process, it only creates future problems of potentially greater and more deleterious impact. Free Market Capitalism requires that there be the periodic destruction of inefficient and unproductive entities in favor of more efficient and productive entities. That said, the social consequence of the current process that the government is trying to contain are a serious threat to our republic. In the short and intermediate term the real threat is that our republic will be destroyed. Preserve the republic and long-term you get the greatest degree of liberty and social welfare. Deleveraging is currently a good. If assets have to be sold to pay down the debt that was used to acquire the assets, so be it. If that slows the economy, so be it. To the extent that the government tries to interfere with the process, it only creates future problems of potentially greater and more deleterious impact. Free Market Capitalism requires that there be the periodic destruction of inefficient and unproductive entities in favor of more efficient and productive entities. That said, the social consequence of the current process that the government is trying to contain are a serious threat to our republic. In the short and intermediate term the real threat is that our republic will be destroyed. Preserve the republic and long-term you get the greatest degree of liberty and social welfare.

]]> By: Anonymoushttp://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-34 Anonymous Wed, 04 Jun 2008 17:36:00 +0000 http://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-34 Good writing. I hope you continue this blog. The one bone of contention - you continue the general idea that deflation is a bad thing. I disagree. We need to deflate down to a sustainable level of leverage and money-to-credit balance.<br/><br/>Nick Good writing. I hope you continue this blog. The one bone of contention – you continue the general idea that deflation is a bad thing. I disagree. We need to deflate down to a sustainable level of leverage and money-to-credit balance.

Nick

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-36 Edward Harrison Wed, 04 Jun 2008 17:15:00 +0000 http://www.creditwritedowns.com/2008/06/de-leveraging.html#comment-36 Thanks, Nick. You're right that we need to de-leverage. I'm all for it actually. But, I don't think the process can be managed in an orderly way. Many good enterprises will go out of business and we risk a downward spiral.<br/><br/>There have been three periods of depression or near depression in the last 100 years. 1929 ushered in the first. A lot of people don't realize how severe the 1973-1975 recession was, especially in the UK. And then 1980-1982.<br/><br/>The 80 to 82 affair shows Volcker hiking interest rates and letting inflation come down. No deflation, but lots of de-leveraging. I'd like to see that again.<br/><br/>But the imbalance in the global financial system is too great. Lehman, Bradford & Bingley, all of that could usher in a 1929 scenario if not handled appropriately.<br/><br/>Nick, your thoughts? Thanks, Nick. You’re right that we need to de-leverage. I’m all for it actually. But, I don’t think the process can be managed in an orderly way. Many good enterprises will go out of business and we risk a downward spiral.

There have been three periods of depression or near depression in the last 100 years. 1929 ushered in the first. A lot of people don’t realize how severe the 1973-1975 recession was, especially in the UK. And then 1980-1982.

The 80 to 82 affair shows Volcker hiking interest rates and letting inflation come down. No deflation, but lots of de-leveraging. I’d like to see that again.

But the imbalance in the global financial system is too great. Lehman, Bradford & Bingley, all of that could usher in a 1929 scenario if not handled appropriately.

Nick, your thoughts?

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