January 6, 2015

THE ENTIRE BAIL OUT/STIMULUS SHOULD HAVE JUST BEEN PUT TOWARDS CONSUMER DEBT:

How debt mercy helps drive US recovery (Monitor's Editorial Board,  JANUARY 6, 2015)

Recovery from the 2007-09 Great Recession is still slow in the US. Yet relative to Europe, which is tipping back into recession, the US has many advantages, such as higher worker productivity, a boost from shale petroleum, and a flush of monetary stimulus from the Federal Reserve. To many economists, one advantage stands out: The US has been quicker to reduce the private debts of homeowners and companies. 

As sloppy and as painful as debt "deleveraging" may be, the American method of bankruptcy, home foreclosure, and mortgage modification has put many consumers back on their feet faster. A culture of forgiveness and a belief in redemption accounts for this willingness to offer a fresh start. But backing it up are court judges and government programs that nurture quick and equitable justice for both debtors and lenders. 

Posted by at January 6, 2015 3:31 PM
  

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