"I am always pleasantly surprised when I find a mainstream media article that displays a healthy dose of common sense when it comes to fiscal stimulus and debt.
Philip Coggan's special report Repent at Leisure, in The Economist manages to do just that.
Like alcohol, a debt boom tends to induce euphoria. Traders and investors saw the asset-price rises it brought with it as proof of their brilliance; central banks and governments thought that rising markets and higher tax revenues attested to the soundness of their policies.
The answer to all problems seemed to be more debt. Depressed? Use your credit card for a shopping spree “because you’re worth it”. Want to get rich quick? Work for a private-equity or hedge-fund firm, using borrowed money to enhance returns. Looking for faster growth for your company? Borrow money and make an acquisition."
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