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I'm speechless. This shows a complete failure to recognise that the current problems are from too much leverage. It's like treating a hangover from drinking t
by brc 17y ago
I'm speechless.
This shows a complete failure to recognise that the current problems are from too much leverage.
It's like treating a hangover from drinking too much beer with a good shot of some grain alcohol.
The problems are excessive leverage and risk taking in the financial sector, and insufficient capital by the companies doing the lending.
Until someone realises this and changes course, the problems will continue. It will be possible to fan the flames and get the economy going again, but it will only crash harder next time. Same as hair of the dog - it will get you up and going again, but sooner or later you have to stop drinking, and that's when it is going to hurt, big time.