More Debt Won't Cure Too Much Debt - Duh...
The government builds up more debt. Why? To cure an economy suffering from too much debt. Does this make any sense to you? Caroline Baum of Bloomberg doesn't think so:
It's so easy for some of us to forget the cause of our problems, isn't it? And so we repeat the mistakes of the past over and over again. Some people never learn. Or maybe they just don't want to learn?
Unless the Fed acknowledges that a credit- fueled asset bubble was responsible for the current malaise, it is doomed to sow the seeds of the next one.More...
Why is this important? Because once a boom goes bust, the effectiveness of monetary and fiscal policies is neutered by the nature of the balance-sheet recession that follows...
It's so easy for some of us to forget the cause of our problems, isn't it? And so we repeat the mistakes of the past over and over again. Some people never learn. Or maybe they just don't want to learn?
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