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There was also 90% margin in the 1920's. And you could margin on top of margin. So if you bought $100 worth of stock with $10 (90% on margin credit), and the value went to $300, you could margin an additional $180 on the equity in the stock. So for $10 cash you could have $270 worth of borrowings for paper investments! Pretty crazy. You can't do that today...

Although I agree, there is a relationship between debt and the economy. Keeping debt down, and interest down, allow for continued spending. When credit is maxed out and cash flow is used to service debt, the economy will slide.

"There was also 90% margin in the 1920's. And you could margin on top of margin. So if you bought $100 worth of stock with $10 (90% on margin credit), and the value went to $300, you could margin an additional $180 on the equity in the stock. So for $10 cash you could have $270 worth of borrowings for paper investments! Pretty crazy. You can't do that today.."

No, but a lot of people qualified for the 50% margin during the 90's. And as the margin calls rolled in during 2000-2002, they lost all of their stock, savings and in some cases more. Becaus their "broker" told them, hang on to the stock, things will get better. This is not much different. I realized that in 98 when the bag boy at the grocecry store started talking about the stock market. It was 1928, redux.