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« How the Housing Bubble Threatens Depression | Main | Surviving Bad Economic Policy: Why I Am Not Gloomy »

April 09, 2009

Comments

Chris Grande

Bill,

Do you think debt/equity ratios are not falling because equity is falling making the D/E ratio stay high (even if some firms are paying off debt)?

Thanks,

Chris

Bill Conerly

Chris,
Good question. The equity definition I used here is book value, rather than market value, to try to avoid that issue.
Bill

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