Why are there people people who can’t see the consequences of this?

The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.

Credit markets have been allowed to once again act somewhat freely and rationally. They have not seized up for responsible people with good credit. When they say “seize up”, what they mean is “those pesky banks won’t lend money to irresponsible people who max out credit cards on junk they can’t afford.”

This is a good thing, but the Fed and the government are doing everything in their power to ensure that the correction is delayed and worsened.