Quote:
Originally Posted by Pleasurepays
credit is another example of the mad financial race to the bottom we have been engaged in, which spending more and more money you don't have inevitably evolves into.
we created a system that made it insanely easy to be over leveraged in every way... and rewards it. banks are over leveraged as are the citizens as is the country/government itself. our country relies more and more on credit to get by. the entire economy depends on credit to create the conditions to get more credit and it all has to collapse from time to time since its nothing more than a simple pyramid scheme - ... we live in a world where its became normal to borrow money from the bank to buy a 3.00 sandwich. its totally fucking insane.
when the credit ponzi scheme collapses... what do we do? we call a few people on Wall Street "greedy"... we haul a few bankers before Congress, we blame everyone but ourselves and then ... the funniest of all... we try to correct a cultural problem of borrowing.. by doing what? by borrowing the largest amount of money that's every been borrowed.
wow
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I like you do not see the logic to it. Loaning/borrowing money caused the housing problems. Loaning/borrowing money caused the banking problems. So how can anyone think that the government loaning/borrowing/printing money to provide these institutions the ability to resume the very thing that created the problems in the first place can solve the problem other than on a very short term basis.
I repeat that I cannot see anyway that a credit/service based economy can surive long term. When one does not produce Widgets and/or the Widget factory is operated on ever expanding credit it seems to me that collapse is inevitable.