Credit crisis headlines all over the world, yes some are so deep in debt they will not survive.
But the real crisis seems in getting credit, without it the world economy is stalling.
Always a balancing act borrowing, but our whole economy relies on us spending money we do not yet have.
If the world undertook to pay cash, only spend what you have, we would never come out of this crisis, thoughts?

Agree belly that credit creation happens as debt. Have read that the first flaw in the system is that money to cover the interest on this debt is not also created at the time and this gives us the boom/bust cycles.

Also read that dollars to pay the blow out in oil prices, (nearly $1billion last year for the US) left economies short of readies to repay loans

However you will I am sure forgive me for saying for some the laws a borrowing are not well known.
Credit is the oil our capitalist world runs on but over use of it, use without even being backed by assets has bought us to this crisis.
If we are to begin to get out and back on track this year it will be how we handle credit that rules our failure or success.

Belly,it is a matter of credit at what price? Study carefully the history of the US Federal Reserve.They are the devils in the current catastrophy.This is a private banking cartell that owns the US currency and charges the US people interest on their own productivity.

If you have the time ,this is a movie that is well worth watching. www.zeitgeistmovie.com While I'm very suspicious of their alternate solutions and philosophies,they do paint a picture of the Global Corporates that is very damning.

Only a fool Arjay would not agree America has played a bigger roll in this crisis.
It seems that country, the birth place of modern capitalism, let greed take a hand.
Credit its self is not evil, within the well known rules, one we live by here, it is the life blood of the economy, we can not prosper without it.
Borrowing must be based on the ability and intent to repay.
It surely must be backed by asserts worth the borrowed amount or more.

Credit is fine, but the interest can only be paid with growth in the
economy. We appear to at last be up against the loss of growth due
to the plateau in the production of energy .
At the moment we have a little freeboard but as soon as the economy
starts to recover we will be up against the limit to growth.
Without increased energy we cannot have increased growth.

Over the next year or two the game will have changed dramatically for
the financial world. With no growth, who will lend money ?

From what I have been reading lately it is believed that the economy
will start to pick up and oil prices will rise also as demand increases
until demand hits the production plateau at which time oil prices
will rise quickly. The high prices will cause another crash and the
cycle will repeat. It has been suggested that there will be 2 or 3
cycles like this before depletion is down too low to enable another
recovery cycle.

All this is of course is theory as we have never been here before and
it makes up some new rules for economists who believe in the magic pudding.