Ken Fisher: We Need More Debt

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Last week Ken Fisher went on TechTicker and said that the US is under-indebted and that more debt would actually be beneficial to the economy.  That’s because our rate of return on assets is higher than our cost of borrowing. 

To many it appears just the opposite: our debt levels our spinning out of control to the extent that we can’t possibly meet them which will drain our income and potentially cause a crash.  But Ken Fisher says this is backwards.

It’s a pretty wacky view and has generated a lot of commentary.  Henry Blodget said he thinks he’s “nuts”Mish weighed in today agreeing with Blodget.

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