Reaction Radio

Roger Nusbaum submits:

John Mauldin’s post this week, via Barry Ritholtz, goes over some of Mauldin’s ongoing concerns specifically the debt we appear to be on the way to building. One very simple way Mauldin says to think about the magnitude of the debt and when it really might be big trouble is if it ever gets bigger than GDP.

He says that we can go on with a large (vague on purpose) debt load for quite a while but that the real problem will come when debt exceeds GDP. I’ve started to read him some lately and he seems to expect very bad things to come our way and unfortunately like many articulate people spelling out a bear case his comments are very compelling.

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