Esoteric Dissertations from a One-Track Mind

February 22, 2008

Maxed Out

Filed under: capitalism, culture, economy, film, politics — Tags: , , — codesmithy @ 10:19 am

“Maxed Out” is a documentary on credit in America.  The documentary itself is copyrighted.  So, I don’t know how long the google video link will last.

There is no kind way to say it, but America has a massive financial establishment dedicated to predatory lending.  Why people take up these predatory lending deals has to do with a complex interplay of consumerist culture, a vast infrastructure of marketing, exploitative collection and perverse incentives, stagnant wages, and political shifts.  However, the short of it is: many Americans have a problem and are burdened with inescapable debt.  Falling house prices may just be the trigger that stops the endless debt surfing people were engaged in.

The long view is that this correction is going to take a while.  And as Krugman has already shown, it is likely to have some unexpected consequences.

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