The Difference Between Uncle Sam and You

Common sense suggests that a drop in private income flows while private debt loads are high is an invitation for people to default on their debts and suffer widespread insolvencies. This would change, of course, if creditors were generously willing to renegotiate existing debt contracts en masse. But this has clearly not been the case thus far during the “recovery.”

via The Truth Revealed About Debt and Deficits | | AlterNet.