Discussion of the origin of the 2008 financial crisis. The true cause was that since the 1970s, our government and many of our people spent all there money and continued further into debt. The future income being pledged by Congress creped from the generation doing the borrowing into the next generation. Borrowing continued and the pledge extended into the grandchildrens generation. In 2008 when it became clear that much American debt was backed by non-existent assets, the debt scheme unraveled. Trillions of dollars listed on corporate books were written off in a matter of weeks.
Hi Lee, Dead on commentary as usual. You are correct, continued borrowing and spending by the government can only lead to hyperinflation, which is going to do even more damage to savings, and wipe out fixed incomes.
mcgelligot 3 years ago