Interesting quote from Merrill Lynch economist David Rosenberg in an interesting article in the NY Times -
“When you look at private-sector debt that was over and above what can be explained by G.D.P., you are talking about $6.5 trillion beyond the economy’s capacity to handle that debt.” That debt will have to be either written off or paid back. People will have to stop spending, he said; they’ll have no other choice. “The problems are deep, widespread and intense.”
If that’s true in the US it’s at least as true in NZ.