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The underlying problems are really the. A lot of money, represented today by those mountains of debt on either side of the Atlantic, was economically wasted - this hadn't create assets that enjoy generated revenue needed to pay back the cash owed. Governments on both sides of the pond continue spend more than they take in, and thus require still more mortgage loans. Cash-rich countries like China keep making these loans because really should to placed their cash somewhere, and because cutting from all the borrowers means cutting off their own customer