Household finances are in a similar, sad shape. From this editorial by Mortimer Zuckerman, editor-in-chief of U.S. News & World Report:
Yes, there are weapons of mass destruction. They are "financial weapons of mass destruction," to quote the famous investor Warren Buffett as he surveyed the morning-after wreckage of the subprime mortgage lending crisis. The continuing destruction can now be called a credit crisis—a significant escalation because credit has been the high-octane fuel powering the American economy for the past half dozen years.Read the entire article,"The Credit Crisis Grows," in which Mr. Zuckerman explains the vicious cyle in which our nation is enmeshed.
People and companies are trying to cope with the debt accumulated during several years of profligate lending and spending. The real danger from a credit crunch is that everyone, from banks to corporations to households, may retrench simultaneously.
What remedies can be applied?...
Read the rest at Always On Watch.