.. . but I am afraid he is right. Tried to create a shortcut to this Newsweek article but it only wanted to put it on my desktop and then would not let me copy it here. Article by Niall Ferguson saying that we don't have a debt problem, we have a growth problem.
"The Fed's Critics Are Wrong: We Need to Avert Depression
Dec 5, 2011 12:00 AM EST The Fed is working to prevent an economic calamity. Why do its critics seem eager to repeat the mistakes of 1931? "
The actions yessterday by the EU are exactly the wrong move as they will stifle growth and lack of growth is the real problem. Before the recession Spain and Italy were paying down their debt but the recession has cut revenue and so the lenders jack up the rates and only make matters worse. I thought it was a cardinal rule - when you are in a hole, stop digging.
When Hoover decided to cut the debt in 1931 he started the Great Depression and all the bank failures.
http://www.washingtonpost.com/busine...NjO_story.html
This is worth reading also.