LET ME BORROW YOUR MONEY - BUT, I'M NOT WORKING: Your Big, Fat-Fingered Debacle - Up and Down Wall Street Daily - R. Forsyth - Barrons.com
"for now the subprime lending and robust housing market was alive and well".
It's sort of like the promiscuous 13-year old girl who doesn't get pregnant but has sex with several boys a day. The only question is "when" not "if".
Socialists tax and borrow, borrow and tax. The result is an encouragement to consume (Greece is an extreme case) and a discouragement to business (read: produce goods) creation and expansion and continuation.
As a result, one has to think on one hand of the TOTAL ECONOMIC PIE (read: total goods produced) and then the DEMAND ON THOSE GOODS (read: total earned and unearned demand for those goods).
Those who save (to try and save and set aside money and investment earnings for the future) find that there money has been borrowed by governments to fund purchases of goods by 'non' producers.
Eventually, those who save realize no return on their savings (i.e. nothing to earn on setting money aside), while those who don't produce but are living on loans from savers, find the saved funds are tapped out.
Is this the problem Europe and the US will face? And, if so, when?
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