We’re not there yet but I think there is a risk that this is the second leg of what happened during the Great Depression. We had a severe economic and financial crisis, then we kicked the can down the road and have too much private debt—households, banks, governments.
You cannot solve the problem with liquidity. At some point where there is too much debt either you grow your way out of...either you save yourself out of it...or you can inflate your way out of the debt problem, but that has a lot of collateral damage.
“We’re not doing it. We’re creating zombie households, zombie banks and zombie governments, and you can have a depression. - in CNBC