SamuelRSmith on 13 June 2009
The system didn't break because of debt, it broke because the debt was with people that couldn't possibly pay it back. Governments (at least the British Gov't) are trying to encourage more lending, but with regulation - things like no 100% mortgages and other things (though I don't know whether these bills are going through, yet, but that seems to be happening without the legislation, anyway), and that's the solution.
Without credit, the housing and consumer durables markets will die, and those, particularly the durables, are large employers within our economies. Having zero lending will have the recession deepen further.
