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Old 06-20-2009, 01:08 PM   #192
richlevy
King Of Wishful Thinking
 
Join Date: Jan 2001
Location: Philadelphia Suburbs
Posts: 6,669
You have to define 'strong'. In many ways, our entire financial structure during Reagan and continuing during Clinton was reworked so that money had less and less to do with actual productivity. In some ways it was a giant Ponzi scheme or some kind of raffle where money was producing more money without actually creating anything.

It got worse when Glass-Steagall Act was watered down by both Reagan and Clinton (with a Republican Congress). Suddenly, BANK was no longer a 4 letter word meaning community investment, reserve requirements, and a conservative approach.

IMO, except for the lending freeze, we are where we should be, focused on real world valuations and a world where debt is called or at least treated as debt, not 'leverage'.

Consistent and indefinite %20 growth is not normal for anything except cancer. We may be returning to a world where getting back %5-10 on an investment is considered good and rating agencies don't have their heads up their asses.
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