CREDIT BUBBLE BULLETIN
Liquidation is only
solution to crisis
The latest US strategy of substituting government-backed debt for Wall Street-backed finance is blind to the fact that the underlying economic structure is now the serious issue. There is no choice but to "liquidate" bad debt, labor and insolvent institutions as part of a massive reallocation of resources. Only this will resolve the credit crisis.
Doug Noland reviews the previous week's events each Monday.