Friday, Mar 14, 2008
Debt needs to expand to infinity to keep the system going
The Telegraph: Hank Paulson urges banks 'raise more cash' as credit crisis deepens
Mr Paulson told the National Press Club. "We need those institutions to continue to lend and facilitate economic growth."
This says that growth is entirely dependent on ever expanding debt.
Posted by sold 2 rent 1 @ 11:05 AM (194 views) Add Comment
1 Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. quiet guy said...
@S2R1
I see your point but there may be a get out clause; accept the need for regular, small recessions to blow bad debt out of the system - the complete opposite of what we are doing now.
Jim Cramer explained this quite nicely in another posting today:
http://www.housepricecrash.co.uk/newsblog/2008/03/blog-socialism-for-the-rich-11194.php
"Recessions are good. They out the excesses. you start again from a sound foundation ..."