MSE Leaders' Debate: Savings (Losings) Accounts

murphydavid

arjar wrote: »

I hope you're being ironic. If we all consumed a little less and saved a little more the world would be a much better place. It would be very interesting to see what happened to any politician who espoused this simple alternative to 'consumer' led so-called recovery.

Although I also hope he was being ironic. I can’t agree with you on the remainder. I think old slap head was correct. It was caused by “the massive debts people and countries have accumulated that have driven asset prices up to unrealistic levels” i.e. If you keep inflating a bubble by passing certain financial instruments or assets around on the basis that, I don’t really want it or know what it is, but because I paid more for it than the person I bought it off, someone is bound to pay me more for it when I sell it to them. Then at some point someone is bound to bet on it failing, point out its real value at which point someone will be left holding the hot potato. In this case – very large banks who shouted ouch and blackmailed the government into taking it from them.
However I think the consumer society where you add value to something then sell it to someone who wants it and keeps it, till it becomes obsolete, has been a massive success, as seen by the failure of communism.