Inequal

Robert Skidelsky has a great condensed piece out at PS, on inequality and capitalism - what he's doing is making a common causal statement starting with why greed manifested itself so readily and focusing not on the supply of credit but the demand  for it instead. 

"And what did the relatively poor do to “keep up with the Joneses” in this world of rising standards? They did what the poor have always done: got into debt. In an earlier era, they became indebted to the pawnbroker; now they are indebted to banks or credit-card companies. And, because their poverty was only relative and house prices were racing ahead, creditors were happy to let them sink deeper and deeper into debt."

It's a bit narrow but it's a horribly valid point. What's more important though,is how the article ends.

"In short, recovery cannot be left to the Fed, the European Central Bank, or the Bank of England. It requires the active involvement of fiscal policymakers. Our current situation requires not a lender of last resort, but a spender of last resort, and that can only be governments.

If governments, with their already-high level of indebtedness, believe that they cannot borrow any more from the public, they should borrow from their central banks and spend the extra money themselves on public works and infrastructure projects. This is the only way to get the big economies of the West moving again."

A lot of people have been saying that. And a lot of people look upon such thoughts as blasphemy. That's why there's little hope for problems to be solved. Because a lot of people in power refuse to admit its very existence.