Actions and reactions

It's not exactly a surprise that partying too hard on New Year's Eve leads to hangovers the next day. Or that pigging out at the all-you-can-eat leads to an unpleasant surprise on the bathroom scale. Or that "taking advantage" of all those pre- and post-Christmas sales results in a guilt-ridden statement, from either your credit card or your bank.

Which is why it's not exactly a surprise that the market for credit has scrunched down. It's a natural reaction to excess.

Economists tend to project the image of the economy as pure math, where people's actions are based on what will make them the most money. But really, it's mob psychology, both the bubbles and the inevitable pop. People tend to do what everybody else is doing. If everybody else is living on credit cards to pay for the lifestyle of the Joneses, well...