timelets

...contrary to popular belief, the deleveraging dynamic is not primarily psychological.

... if everyone went to sleep and woke up with no memory of what had happened, we would be in the same position, because debtors’ obligations to deliver money would be too large relative to the money they are taking in.

...a big part of the deleveraging process is people discovering that much of what they thought of as their wealth was merely people’s promises to give them money.

-- Ray Dalio, Principles for Navigating Big Debt Crisis. p25.

This is an excellent way to think in the present. Obligations to deliver vs income creates a gradient for action.