Thursday, August 23, 2012

The Diminishing Marginal Productivity of Debt in the U.S.

We look at how little bang for the buck taking on debt produces at least every few months.
Today it's from OfTwoMinds:
Spreading Insolvency Around Does Not Create Solvency
...As for adding more debt (selling Eurobonds, Treasury bonds, etc.), please note the diminishing return on additional debt: it is now negative....MORE
Last month the headline at ZeroHedge was a succinct:

In Q2 America Added $2.33 In Debt For Every $1.00 In GDP