by vincent » Tue Nov 29, 2011 8:18 pm
Consumer debt aint your problem. It's called a SOVEREIGN debt crisis, not a consumer debt crisis for a reason.
Your typical consumer cut's spending during lean times, and reacts much better then your typical government.
Trouble is the sovereign debt is there because they took on alot of bank debt,most of the worry about EU sovereign debt is because there is alot of unknown bank debt sitting on European bank books,with yet more to come when confidence drains and banks start collapsing.The bank debt HAS become the sovereign debt,but there is no-one left to bailout the soveriegns.We as a society have maxed out our on our debt levels,which has left the banks high and dry,they may have separate titles but they have a strong link.
Consumers have been very irresponsible too,taking out mortgages and credit card loans, lying or ignoring income levels and generally living it up like there was no tomorrow.We have a consumer society and we must take some of the blame too.The banks made good easy profit from it and the governments raked in the tax revenues too...everyone was enjoying the party.....till the boom ended,as all booms do.
I dont see it as a bank or government versus consumer issue,we are all equally to blame...if their has to be blame.We lived beyond our means.
[quote]
Consumer debt aint your problem. It's called a SOVEREIGN debt crisis, not a consumer debt crisis for a reason.
Your typical consumer cut's spending during lean times, and reacts much better then your typical government.[/quote]
Trouble is the sovereign debt is there because they took on alot of bank debt,most of the worry about EU sovereign debt is because there is alot of unknown bank debt sitting on European bank books,with yet more to come when confidence drains and banks start collapsing.The bank debt HAS become the sovereign debt,but there is no-one left to bailout the soveriegns.We as a society have maxed out our on our debt levels,which has left the banks high and dry,they may have separate titles but they have a strong link.
Consumers have been very irresponsible too,taking out mortgages and credit card loans, lying or ignoring income levels and generally living it up like there was no tomorrow.We have a consumer society and we must take some of the blame too.The banks made good easy profit from it and the governments raked in the tax revenues too...everyone was enjoying the party.....till the boom ended,as all booms do.
I dont see it as a bank or government versus consumer issue,we are all equally to blame...if their has to be blame.We lived beyond our means.
