Unbelievable

A really nice paper on the unsustainability of the bubble is this 2006 paper by Robert Parenteau, US Household Deficit Spending. We were well into Minsky's ponzi finance regime where debt is acquired to pay off previous debt leading to a debt trap. Even if income increased with productivity, it could not sustain debt rising with asset values. Finance wasn't growing with the economy, it was the growth of the economy, it was growing at the expense of the economy. This is why it is so unbelievable so many failed to see it coming. They had to close their eyes really tightly.