Consumers are increasingly unable to pay off their credit cards, forcing banks to hoard cash to protect against future losses and lend to fewer people, according to reports yesterday from several of the nation's largest banks.
Hilzoy and Matt Yglesias look at the coming post-post-Fordist debt crunch. It's a big problem, something I've gestured towards before. But Hilzoy's got the wrong chart: this problem goes back way before Bush took office—he's just made it that much worse.
And note the trend:
Wednesday, October 22, 2008
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