Doom and Gloom! Whee!

I know everyone thinks that I'm the perennial financial doom-meister, and, although I think that recent history is actually backing me up, I'd still like to be thought of as kind of a sunny guy.

...but then it's so hard when you see graphs like this:


When you look at this from a bank solvency perspective, you just gotta wonder how they're going to pay all this back. Or are they? Now that the Fed is even taking credit card debt as collateral¹, maybe the plan is just to nationalize all the bad credit, which would be the bail-out of the millennium, and so far beyond the pale that the term "moral hazard" just doesn't work any more.

Students of American history might recognize a few of those "tiny" upward blips....

Yours,

Mr. Sunny Outlook Guy



¹ Just because Congress said you can't wipe out credit-card debt via Chapter 11 doesn't mean these'll actually be worth anything in a high-foreclosure environment that actually makes Chapter 7 look like a better long-term deal for the debtor.