What great planning

Not only are we financing a pointless war in Iraq entirely by borrowing, but people are living not paycheck-to-paycheck, but entirely on credit.  The following excerpt is from the Time, 13-October-2008 article, The End of Prosperity?

In the case of housholds, debt rose from about 50% of GDP in 1980 to a peak of 100% in 2006.  In other words, housholds now owe as much as the entire U.S. economy can produce in a year.  Much of the incrase in debt was used to invest in real estate.  The result was a bubble; at its peak, average U.S. house prices were rising at 20% a year.  Then—as bubbles always do—it burst.

Guess it’s time for people to put away the credit cards and live paycheck-to-paycheck like they did in the Seventies…