Tuesday, 3 February 2009
Beyond The Age of Leverage
"Call it the Great Repression. The reality being repressed is that the western world is suffering a crisis of excessive indebtedness.
Many governments are too highly leveraged, as are many corporations. More importantly, households are groaning under unprecedented debt burdens.
Worst of all are the banks.
The best evidence that we are in denial about this is the widespread belief that the crisis can be overcome by creating yet more debt.",
Niall Ferguson, Financial Times, 02.02.2009
Mr Ferguson remarkably summarize what I have been thinking for the past few years .