After listening to an informative episode of an NPR program explaining the banking crisis this morning, they concluded by noting that our debt obligation is now right about equal to GDP ($13 Trillion or so). The last time it was that high was 1929, The implication being that we are all guilty of creating this crisis. In fact, it wasn't just implied, it was flatly stated. I am of a different view. I think it is much more insidious than that. People behaved rationally in an irrational system. It isn't about morality. They made the rational choice. The blame lies on those who created a system that made these levels of debt a rational choice for the average worker. I thought there was a need to repost these two previous posts explaining why I agree that credit is the problem, but it won't wash to blame the population as a whole for the phenomena.
Why is it that credit ate the economy?
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