Friday, March 14, 2008

Debt needs to expand to infinity to keep the system going

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 (493 views)
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One thought on “Debt needs to expand to infinity to keep the system going

  • @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 …”

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