Is Credit The Key?

The country runs on credit, or so we’re told. Without functioning banks willing to lend, some companies won’t meet payroll. But wait – does anyone else see a problem here? Doesn’t this imply an overreliance on credit? Maybe that’s the real problem – too many people and businesses living beyond their means. If so, that’s a structural problem whose impact can only be postponed, not eliminated.

I like this analysis. The money quote:

I’ve been amazed at the sheer numbers of otherwise sensible people who seem to be under the impression that paper credit–not savings and capital–is the key to capitalist success.

Indeed.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: