oh dear the illusion of wealth brought about by the increase in debt is really being shattered
what you gonna do now Gordon - to keep people spending money they havent got - oh i know you can get the government to spend future tax payers money
all those malinvestments (factories, car dealerships, bathroom and kitchen accessory showrooms, mortgage brokers etc.) now need to be written off - the demand was there only because of the easy access to credit - the demand wasnt real.
Savings need to be built up and balance sheets repaired (Governments, Individuals and Companies). Unfortunately, this is a painful process and our leaders have chosen the path of less pain now (inflation and more debt) - more pain later