How many of the president's cabinet appointees have previously worked in the private sector?

If you take on debt in order to expand production, the extra output can make it possible to pay off the debt later, and you come out ahead. But when you borrow to increase consumption, all you’re doing is taking output from the future and consuming it now.

No empire that had to borrow money from its rivals has ever lasted very long.

Stocks have gone nowhere in 12 years. But it’s not nowhere that they need to go. They need to go down. They need to complete their historic rendezvous with the bottom.

Private sector debt is much greater than public sector debt. So when people begin to pay it down, it has a big effect on everything. Jobs disappear. Prices fall. Businesses go broke.

A depression destroys excessive debt. Businesses with too much debt go broke. Bonds that can’t be paid go into default. Households that have spent more than they could afford go broke.

The New York Times reports that the rich are defaulting on their mortgage loans faster than the poor.

The real reason people are unemployed is that the price of labor is too high. We're in a period of price and debt destruction. Output prices are going down. So, labor prices should be going down too.

A depression would wring the debt out of the economy.  It would get rid of weak businesses.  It would turn spendthrift households into savers.  That’s got to be worth something.

The correction is doing its work.  The feds tried to stop it with trillions in loans, guarantees, and stimulus spending.  They failed.