The Bailout is the Symptom, not the Disease

Niall Ferguson, writing at Time Magazine, noted some key facts in his article on the bailout bill. He points out that it's not just the Federal Government that is buried in debt.

In the case of households, debt rose from about 50% of GDP in 1980 to a peak of 100% in 2006. In other words, households now owe as much as the entire U.S. economy can produce in a year...

Banks and other financial institutions are in an even worse position: their debts are accumulating even faster. By 2007 the financial sector's debt was equivalent to 116% of GDP, compared with a mere 21% in 1980.

The puppyblender keeps noting states and municipalities that are getting farther and farther behind with their unfunded pension liabilities.

"The Illinois State pension fund is $44 billion in debt. That’s the worst in the country."

The problem of underfunded public pensions will make Fannie and Freddie look like small potatoes.

Next up: Health care for all! It's a right!