"But People Can't Get Credit"

I'm mighty sick of the rationalization of the bail out based on the concept that "people can't get credit" ergo the whole world will end. The point is moot in that the bail out has already passed, but I still want to go down in the history books as saying,

"The last thing the US needs is more debt. A tightening of credit and LESS debt is exactly what this country needs."

Of course I know what I've just said is blasphemy; telling Americans to work, live within their means and not use debt to buy what they can't afford, but that still doesn't change the fact that Americans are overleveraged.

Alas, why I found this chart in The Economist very interesting;


I've seen government debt as a % of GDP. As well as household debt as a % of GDP. But I never saw "Total Debt" (which includes government, consumer and corporate debt) as a percent of GDP, which is now higher than it was during the Great Depression.

I don't care what the likes of Hank Paulson, Bernanke and whoever else out in Washington thinks, the forces of economics are more powerful than their little plan. And bail out or not, I'm going to gander the economy will still collapse under the weight of this debt.

Oh, and that doesn't even include the weight soon to be added by social security and medicare which is right around the corner.