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Is there too much debt driving the economy and financial markets at this time?

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AP

"No -- there is a healthy amount of debt, which indirectly makes corporations more efficient and management more accountable vis-à-vis the potential for buyouts and M&A activity."
-- Justin O.

"No there isn't too much debt driving the markets, but the economy, yes. American's are set on a charge now, pay later frame of mind. I say, pay raise."
-- Jess B., Florida

"Absolutely! I think we as a nation are headed for a disaster. There's no way to stop it either. We are way too far gone."
-- Don C., Connecticut

"Yes, LBO's will create the next big bubble. We should not be required to bail them out. They should sink by their greed!"
-- M.E.

"No, the amount of debt is always exactly the amount that it should be. Debt level is by nature a reactive beast."
-- Michael P., Indiana

"The global economy is awash with liquidity, and much of the money is being invested in stocks and real estate. China, EU, India, Brazil, Middle East, Russia and US investors will keep moving this market upward. The debt is financed at low interest rates and does not currently pose a problem."
-- Peter B.

"The private equity firms are using the banks and the wrong type of debt instruments to secure their deals. When the hype is over and it becomes payment time the banks are going to be holding the bag. In the end consumers will pay for the cost of both parties greed!"
-- Randy R., Kentucky

"Yes! Call it credit or call it debt, the reality is to many people have become accustom to having easily accessible cash (debt) through home equity or credit cards. The spineless villain in this game is the FED for taking the value out of the dollar by not increasing rates to stem inflation. Inflation is entrenched in our economy, the FED should take its head out of the sand increase rates and force Americans to have some discipline with their spending.
-- Tim M., Hawaii

More comments...

"Absolutely! But hey, it worked for Clinton."
-- Marc W., Texas

"Some people have way too much debt and when it catches up to them, which it will, we'll notice the effects in the economy but it won't be significant. Most people have a reasonable amount of debt that they can deal with. As long as the economy keeps humming along we should be okay, but if we go into a severe recession or a long-term recession the debt may become a much bigger problem."
-- Ray M., Florida

"Yes. LBO s will create the next big bubble. We should not be required to bail them out. They should sink by their greed!"
-- Manood G.

"The only thing driving our economy is higher oil, energy, insurance, taxes and food prices, thanks to the people of the USA and now we are being blamed for it. We are running out of money to do the things we are accustomed to and think that borrowing money to try and get ahead is the answer, it's the American way so we are taught. When is the government going to stand up for the consumer so we will be able to afford the cost of living in the future, if not we as middle class will cease to exist and therefore drive our country into a recession. Something has to be done to curb inflation because it is out there and growing every month and so is our debt ratio."
-- Joe S. Florida

"The Chinese stock market bubble is a tidal wave waiting to wipe out trillions in equity. This will solve the debt problem and many will be facing hard times."
-- A.C.