Sunday, January 1, 2012

1/1/2012: That debt overhang problem: replay

I am delighted to note that John Mauldin is also stressing the issue of total real economic debt overhang that I have been vocal about for some time now. Here's his 2012 predictions post:
that also contains this delightful chart:

And, spot the one country that stands out? Yep, that's Ireland - second to Japan in terms of total combined debt/GDP ratio, and well ahead of Japan when GNP is referenced in the above.

I have highlighted the issue of debt overhang and the long term real growth drag exerted by it in a number of articles now, including articles in the Sunday Times, the Globe and Mail, Ireland's Village magazine and on this blog. At last, analysts are starting to pay attention to the issue.

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