Economy

Sent: Wednesday, November 26, 2008 3:00 PM
Subject: DickMorris.com


The subprime mortgage crisis is only the Sarajevo which caused the financial collapse. The real reason is the massive explosion of debt at all levels and in all forms that has engulfed the world. Since 1992, the total of debt in the world has gone from a level equal to global GDP to a level that is now 3.7 times as much as global GDP. This debt explosion, explained in Charles Morris’ book (no relation) The Trillion Dollar Meltdown, consists not only of mortgages, but bonds for corporations that can’t repay them, credit cards for consumers who are neck deep in debt, car loans for drivers who can’t meet the payments, student loans that are swamping young couples, and default insurance sold by companies that can’t make good on their commitments. This massive debt has to be sweated out of our global economic system like a heroin addiction.

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http://www.dickmorris.com/blog/