Essentially all of the so-called “growth” since 1996 was in fact debt that was claimed to be growth!
As total debt rises so does total debt service and this presents an ever-growing drag on growth (GDP).
Adding to total debt through bailouts, which must add to total debt as we do not have the money in the United States and must borrow it, simply adds to the negative impact on GDP and thus the drag on the economy!
There is no escaping this reality whether the government (or private parties) like it or not. These are mathematical facts and not subject to political whim; Paulson and Bernanke, both of whom are highly intelligent, understand this.
How To Create A Depression