The Kids can study this Piece from David Merkel, and begin to understand How we have come to our current position. Everyone borrows, it is the nature of the World. There are Those who borrow based upon the realistic ability to repay the debt, and Those wh use borrowing capacity as a form of advertisement suggesting desired growth. It is like playing Dice, with only one way to make your Point, and many ways to miss. Saying that a debt restructure method is possible, is not saying that such method is likely. This style of borrowing always ends poorly, especially when all Players insist on constant re-betting on the outside Odds. Boom and Bust cycles are as likely as Spring rain and Summer heat when a consistent pattern is utilized.
I will let my Readers study this Piece, something basically written for Investors. Do you think that you would be enthused to risk great amounts of Money–especially your own–on the immediate information? The descriptions encase the basic environment for Investment, and One need not wonder too seriously Why there is a search for guaranteed Returns. I even find it amazing that there is so much Investment capital out there; this coming basically because of set Retirement portfolios reliant on a consistent Tax Break. Without these Accounts, it is likely that this Recession would follow the normal decay patterns of earlier recessions. I can only state to my Viewers that they should not expect rapid Recovery.
This information is far more indicative of the state of the economy than elsewhere. The States are in a lot of trouble, and for their populations; this means a lot of lost Jobs on the ground. The Stimulus packages rarely affect State budgets in any effective way, and the good numbers are not expected to come back anytime soon to State Treasuries. We cannot pull rabbits from the Hat, and the future remains bleak. The Fed and Congress must really analyze a policy of No Interest for Business, coupled with high Interest rates for Consumers. Somewhere in the mix it must be stated if Business gets a Break, then it must be extended to their Customers. lgl