Part 4/7:
Armstrong expressed that a true economic depression stems from a debt crisis rather than stock market crashes. He illustrated this point by recalling the Great Depression caused by widespread defaults across Europe. He drew attention to the visibility of government debt compared to equities, noting how debt remains a personal liability that profoundly affects consumer behavior. For instance, he pointed out that real estate is perceived as savings, and any downturn there can lead to reduced spending, further complicating recovery efforts.