Dangerous Experiment

The stock markets are currently moving in a tension between two extreme developments, a prediction about future stock market trend as good as impossible. On one side stands the massive debt of U.S. households, which for decades lived beyond their means and thus the world economy have stimulated. Meanwhile, the amount of debt in the private sector to about three times the GDP (about 42 absolutely trillion dollars). On the eve of the Great Depression to 1929 (as it is today not a normal cyclical downturn, but a debt crisis), the rate was approximately 150 percent more effective. Normally this would reduce the excesses require an apology, in view of the magnitude achieved over decades and so the economy for a long time in the stagnation (or recession) would drive.
The debt problem is but the extent also in their historical interventions of central banks and the rescue packages from governments. The rates in the U.S. are virtually nil, the economic packages go into the trillions. Here, too, can not see how this experiment ends. Perhaps the citizens have the seriousness of the situation and recognize the use of surplus funds to debt reduction. The economic effect of government measures would then evaporate. The lower debt in the private sector simply stands higher deficits over the state. You may leave the household but also deprive the debt spiral continues to rotate. Like the new millennium could be a new bubble (real estate today, then maybe the stock market) are triggered by which the citizens feel rich and their consumption increase once again. Short term would then once again an economic discharge revealed the problems in the system long term but would be even greater. Such a bubble is expected to be the latest burst in ten years. And whether the state the resulting problems could still shoulders, is more than questionable.

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