Debt saturation occurs when each additional dollar of debt adds nothing to productivity. This is called the "marginal productivity of debt". In the 4th quarter of 2009, it was less than zero. Here are a couple of articles that explain the concept:
http://economicedge.blogspot.com/2010/03/most-important-chart-of-century.html
http://www.zerohedge.com/article/guest-post-debt-saturation-and-money-illusion
After the debt saturation point, for productivity to increase, debt must decrease.
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