How Big Is This Problem, Anyway?

Warren Buffett called them “financial weapons of mass destruction” six years ago.  But how big is the problem?  Surely if the all-powerful government steps in, all is well, right? Not so fast.  This ought to give you a pretty good idea of the magnitude [Yes, that little speck on the left is the entire US money supply]:

[Source: US Global Investors]

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3 thoughts on “How Big Is This Problem, Anyway?”

  1. A New Modest Proposal

    Lets cancel all debt both domestic and foreign and begin fresh with better governance. This means mortgages and credit debt are absolved. Victims of New Orleans and Texas could be put in foreclosed homes rather then rebuilding in precarious areas. That land should be turned over to farmland that is sparsely populated and save repeated economic ruin when these storms
    come. Print new currency with old currency needing to be converted at banks at insuring people up to $100,000. The rich will find away to become rich again. Meanwhile with the government and the people unsaddled with debt will thrive because taxes will lower and funds can be directed at infrastructure instead of debt which will increase jobs and help america prosper. We have fallen so far behind that we need to jump forward. So let's not start a wall street when we can start again and not be left with a crushing debt. The only people this will not appeal to is the very wealthy, but if they care about their fellow citizens and their countries prosperity then this is the only logical solution to an economy based on a house of cards.
    All credit cards combined would need to be limited to 10% of income with a rate no higher then 5% above prime and mortgages no more then 30% of income. This would keep prices in check and limit deficit spending.
    Will you say this on air and when?

  2. A New Modest Proposal

    Lets cancel all debt both domestic and foreign and begin fresh with better governance. This means mortgages and credit debt are absolved. Victims of New Orleans and Texas could be put in foreclosed homes rather then rebuilding in precarious areas. That land should be turned over to farmland that is sparsely populated and save repeated economic ruin when these storms
    come. Print new currency with old currency needing to be converted at banks at insuring people up to $100,000. The rich will find away to become rich again. Meanwhile with the government and the people unsaddled with debt will thrive because taxes will lower and funds can be directed at infrastructure instead of debt which will increase jobs and help america prosper. We have fallen so far behind that we need to jump forward. So let's not start a wall street when we can start again and not be left with a crushing debt. The only people this will not appeal to is the very wealthy, but if they care about their fellow citizens and their countries prosperity then this is the only logical solution to an economy based on a house of cards.
    All credit cards combined would need to be limited to 10% of income with a rate no higher then 5% above prime and mortgages no more then 30% of income. This would keep prices in check and limit deficit spending.
    Will you say this on air and when?

  3. A New Modest Proposal

    Lets cancel all debt both domestic and foreign and begin fresh with better governance. This means mortgages and credit debt are absolved. Victims of New Orleans and Texas could be put in foreclosed homes rather then rebuilding in precarious areas. That land should be turned over to farmland that is sparsely populated and save repeated economic ruin when these storms
    come. Print new currency with old currency needing to be converted at banks at insuring people up to $100,000. The rich will find away to become rich again. Meanwhile with the government and the people unsaddled with debt will thrive because taxes will lower and funds can be directed at infrastructure instead of debt which will increase jobs and help america prosper. We have fallen so far behind that we need to jump forward. So let's not start a wall street when we can start again and not be left with a crushing debt. The only people this will not appeal to is the very wealthy, but if they care about their fellow citizens and their countries prosperity then this is the only logical solution to an economy based on a house of cards.
    All credit cards combined would need to be limited to 10% of income with a rate no higher then 5% above prime and mortgages no more then 30% of income. This would keep prices in check and limit deficit spending.
    Will you say this on air and when?

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