Stop Spending Money You Don't Have.


That's Niall Furgeson's advice. His column from Saturday's Australian is well worth your time. He's right about nationalization of the banks, he's correct in saying that mass mortgage modification will be required and he's exactly right that paying policy homage to John Maynard Keynes is nice, but it's probably the wrong policy.

Furgeson writes: The delusion that a crisis of excess debt can be solved by creating more debt is at the heart of the Great Repression. Yet that is precisely what most governments propose to do.

Read it twice. (via Kedrosky).