29.07.2009, By The Mogambo Guru

Bill Bonner here at The Daily Reckoning pretty much nailed the problem when he said that “During the 2001-2007 period, credit in the United States increased by $22 trillion. The nation’s GDP increased only by $4 trillion.”

The ugly result was that, dividing one into the other, “For every extra dollar of output, Americans took on $5.50 of debt” which is the same as me stupidly taking a part-time job in addition to my regular job when I hate working my regular job because I hate working, just to make a few extra dollars because all of my income from my regular job (which, if you remember, I hate) is already used to pay debts, and then I used this “extra income” to borrow 550% of the extra income! Hahaha!