[arete]

I suspect there are more debtors than savers and whatever the government does is going to cause the least pain to the majority. I don't think the savers can win, actually

You make it sound as if the FED as been some kind of passive player in the creation of debt to this point. The FED has actively encouraged the expansion of debt at the expense of savers. That is outrageous. What gives the FED the right or mandate to encourage wild speculation in any market and why must wiser and more prudent people be forced to pay the price for the lunacy?

Richard W.

[Question_Assumptions]

It isn't just the Fed. The tax code not only rewards you for buying a house on debt but also for buying things with home equity loans. An credit card companies will give you more and more credit until you hang yourself. As I said, people have had problems controlling debt at least back to Sumeria (where they would go through cycles of people losing their land to debt and then revolting until the king redistributed it back to them). It is easy to just blame the Fed or those in debt but those who finance debt also need to realize that overextending credit is not a party that can last forever.