“University of Maryland economist Herman E. Daly points out that the current crisis is really one of the “overgrowth of financial assets relative to growth of real wealth.” Daly believes that “financial assets have grown by a large multiple of the real economy” and that “paper exchanging for paper is now 20 times greater than exchanges of paper for real commodities.” Exploding debt liens have simply outgrown the wealth. The problem, in other words, cannot be bailed out. Historically, debt that cannot be redeemed has been repealed by inflation. The same inflation that wipes out debt will wipe out savings.” – Former Assistant Secretary of the Treasury Paul Craig Roberts, in Can a Bailout Succeed?
Jim’s Quote of the Day:
