Tum Wrote:
Sep 20, 2012 8:22 AM
IMHO, neither Clinton or Gingrich balanced the budget. The budget was balanced thanks to the bubble in the nasdaq which was caused in part by a change to banking rules. In 1994, banks were suddenly allowed to keep essentially nothing in reserve as they swept money from account to account. That sudden influx of cash had to go somewhere. It went into hedge funds (eg LTCM) and daytrader accounts. It shouldn't be a surprise that the gov't's income (and spending) increased substantially during the bubble years and deflated (just the income) slowly as bagholders dutifully subtracted 3k from their income for years afterward. Clinton and Newt balanced the budget. Unfortunatey their new economy had all the permanence of a breath on a mirror.