Categorieën
Analyses

The balloons must be emptied first

For approximately 30 years, the world allowed credit to balloon at least ten times beyond the size of the world’s true economy. Gigantic companies financed themselves with credit, even ran their daily operations with money they had loaned. That wasn’t surprising. Taking out loans was rewarded with fiscal deductions, positive interest rates, and a rich variation of other rewards and instruments. And then things went extraordinarily wrong.