Considering the term “credit crunch” is perfectly self-explanatory, while the term “credit crash” is yet more graphic, it is amazing that there is so little political will to understand quite what went wrong in the global markets over the years that led up to the seismic revelation of collapse that has been defining our times ever since. The western world became intoxicated with the idea that the creation of debt – any old debt, not just, or even, boring, sound investment – was the creation of wealth.
Those who fail to learn from their mistakes are doomed to repeat those mistakes. I am lucky I have little real debt — a small credit card balance, which is paid off totally each month — but it seems nonsensical to continue to get deeper into debt in order to try and maintain a status quo.
Since much of the supposed debt our political masters have created is really only on paper, why not just write it off. Just default on the payments, and wipe the slate clean. Start over, and this time run an economy properly. Close those legal loopholes that let huge corporations avoid paying billions of pounds in taxes.
It won’t happen, though. Sadly.