DEBT!

A nice article from England showing the start of some fallout from their own bubble. The engine of their economy for 10 years or so was their housing bubble. As per Lord Keynes, the "animal spirits" of increased aggregate demand propagated through the housing bubble has made people incredibly indebted. Well as house prices stop going up, the debt seems less attractive to it's owner (as does the house). It turns out that this is just like an inverse Robin Hood senario, where creditors/businesses made money by regular people leveraging themselves into this bubble. This is shamefull central banking at it's worst. The Anglo-Saxon world will not be able to compete with the Chinese by propagating a housing bubble. I just pray this won't be another 1930's.

bad debt