The people who spent on credit were the bright ones. There is no way that we are going to get out of this without substantial debt moratoriums. Debt servicing is just too big a fraction of the economy.
The debt moratoriums will be either explicit or implicit (massive inflation).
Creditors will lose out and debtors will win big. Assets are probably overvalued, so there will be some deflation there.
The debt moratoriums will be either explicit or implicit (massive inflation).
Creditors will lose out and debtors will win big. Assets are probably overvalued, so there will be some deflation there.
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