31 December 2007

Debtors, Debtors--Everywhere!

You people do realize that the first couple of boat loads of settlers in America were the dregs of the English prison system, right? Most were debtors--those that could not pay their and their families debts and were imprisoned.

I bet you are wondering why I am bringing this up. Why, oh why, Professor? Just to bring to light that the US went from a nation of debtors to a nation in debt. All the "good" indicators of the economy, like consumer confidence is based on credit. People are spending credit not money. It has been said that 6 out of 10 people in the US are in debt. The problem is it WILL NOT get better.

Housing sucks--a debt problem. This will not be fully known until probably '09. Plus a lot of the institution that are buying the US debt are from foreign shores. Meaning we are and will be in debt to other countries.

It will never happen, but I would like to see the debt called in. It would make the Great Depression look like a hiccup.

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