Daily Investment Interpretations

February 16, 2009

2009-2-16 (President's Day):   In permanent link to Permanent Link to Debt in wartime, Paul Krugman notes that during World War II. as the ratio of the federal deficit to the Gross Domestic Product soared to hitherto-unimaginable levels, the private debt-to-GDP ratio fell from 1932-onward, and especially so during the war years, when everything was rationed and everyone was buying war bonds. As a result, there was a pool of ready cash to buy all those items needed for the post-war baby boom and to prevent the economy from falling back into a state of depression.
    In Permanent Link to Household balance sheets, Dr. Krugman links to a highly informative and excellent Baseline paper that he describes as a "must-read":
    For reasons that I'll explain tomorrow, I've added the 50-day moving averages to the popular market indices, below.