During WWII, the US government needed investors to buy an unprecedented amount of Treasury bonds. Commercial banks loaded up on Treasuries, which limited the amount of credit that could be granted…
April 9th, 2010 | Dan Amoss | 1 comment | ContinuedAll Posts Tagged With: "Ken Rogoff"
China’s Economy is the Greatest Bubble on Earth
But is there really going to be a round two? Well, if the first incorrect assumption was that Australia didn’t have a bad debt problem, the second assumption is probably even more dangerous. It’s more dangerous because it’s the single most unexamined assumption behind much of Australia’s economic prosperity. The assumption is that we’ll always have China.
March 18th, 2010 | Dan Denning | 30 comments | Continued
Household Debt Represents Spending Taken From the Future
But you can’t take an infinite amount from future earnings. You reach a point when the future can’t handle it. As more and more future earnings are absorbed by past consumption, pretty soon there’s not enough left to live on. At some point, so much of earnings are devoted to paying the interest…
August 11th, 2009 | Bill Bonner | 3 comments | Continued
