We are indebted, so to speak, to Paul Krugman for pointing out in his commentary of Oct. 14 that the solution to our financial problems is “debt relief.” He asserts that “sometimes debt relief is in everyone’s interest.”
Unfortunately, “everyone” in this instance does not include the lender; if we embark on a nationwide program of “debt relief,” lenders like banks, savings and loan associations, credit unions, charge card issuers and myriad others will simply stop lending, thus destroying the economy in one fell swoop!
Without a reliable source of credit, nothing happens. Plus, who’s going to manage this new “debt relief” program? Obviously — a new Federal Bureau of Debt Relief, which will work closely with all the other federal agencies to make sure the program is fairly administered.
If you believe that, I’ve got a bridge for sale, but only if you have cash!