Just remember that these kind of transitions can take longer than anyone expects - the article says "but in truth the old arrangements are now coming apart and, in anything other than the short term, seem patently unsustainable." That was also said in the 80's (the US borrowing more than it takes in), but it turned out that the short-term was longer than anyone thought. We can't be sure that *this* crisis will be the one to cause the wheels to fall of the wagon.

Though maybe it will be - just this week another credit market seized up, with organizations with excellent credit like the Port of New Jersey suddenly finding that people would only loan them money at 20% interest rates. Presuma...

Just remember that these kind of transitions can take longer than anyone expects - the article says "but in truth the old arrangements are now coming apart and, in anything other than the short term, seem patently unsustainable." That was also said in the 80's (the US borrowing more than it takes in), but it turned out that the short-term was longer than anyone thought. We can't be sure that *this* crisis will be the one to cause the wheels to fall of the wagon.

Though maybe it will be - just this week another credit market seized up, with organizations with excellent credit like the Port of New Jersey suddenly finding that people would only loan them money at 20% interest rates. Presumably the Port will find other ways to borrow money, but things like this shouldn't happen in a healthy system.