Nobody Understands Debt

[Boon]

Nobody Understands Debt

FEB. 9, 2015
Paul Krugman

Many economists, including Janet Yellen, view global economic troubles since 2008 largely as a story about “deleveraging” — a simultaneous attempt by debtors almost everywhere to reduce their liabilities. Why is deleveraging a problem? Because my spending is your income, and your spending is my income, so if everyone slashes spending at the same time, incomes go down around the world...........

http://www.nytimes.com/2015/02/09/opinio....html?_r=0

[Temperament]

i think the World Economy runs on debts more then anything else. If everyone don't want to lend because don't know who(borrower) to trust, then 2008/2009 may happens again. Capital moving as debt is so much more important (larger) than equity.
Will oil prices collapse, trigger bond market reaction(perhap chaos) or even collapse.

[Life is a game]

Capitalism has become creditism.