On What The Real Problem Is With The Economy

THEY STILL THINK THIS IS A BANKING CRISIS | PRAGMATIC CAPITALISM: "One of the primary reasons why we can’t get out of our current malaise is due to the fact that our government continues to misallocate resources and impede the recovery by completely misdiagnosing our problems. Over the last few years we have constantly referred to our problems as a “credit crisis” or a “banking crisis”. But this was never a banking crisis. It was a household crisis. The American balance sheet recession is a direct result of the fact that households took on too much debt and when their debt position became unsustainable the economy sank into a deep recession as American households went into deleveraging mode. This ultimately led to a banking crisis which was merely a symptom of a much bigger problem.

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