Kyros on 27 September 2008
We are in this mess because we spent money we didn't have. You can't solve this problem by spending money we don't have. Simple.
A bit too simple. The low low low savings rate and high foreign debt of the US are also a problem but not the main course of the current financial crisis. (that's more some bad accounting surrounding sub-prime, credit default swaps ...)
Besides sometimes you HAVE to spend more money you do not have unless you want to implode the whole system. In the banking crisis 1929 the state didn't help and the treasure secretary said the system had to purge itself. That didn't work so well.
