M-P

Still Blaming the Market Victims

There are some fundamental truths in this piece around saving and consuming. Those that save and defer often (not all the time) subsidize those who consume and want immediacy (on a personal and country basis). As low as rates were, many people did not bite - they did not change their fundamental equation around inflows and outflows. There were definitely some lax underwriting standards and ratings, but we know who they are paid by - the very people they are rating. Skepticism is a good mindset to have when things sound too good to be true. Not everyone should be able to get easy credit or they should at least pay the consequences for their decisions - no public net. Prudence and prioritization should be rewarded.