Megan McArdle’s comments: "I’ve noticed an upsurge in liberal blogs claiming that of course, borrowers don’t bear any responsibility for their current straitened circumstances. After all, there are two parties in a transaction, and the lenders are professionals and should have known better."

Here’s Benjamin Franklin on an 18th Century version of the problem:

We had an alehouse boy who attended always in the house to supply the workmen. My companion at the press drank every day a pint before breakfast, a pint at breakfast with his bread and cheese, a pint between breakfast and dinner, a pint at dinner, a pint in the afternoon about six o’clock, and another when he had done his day’s work. I thought it a detestable custom; but it was necessary, he suppos’d, to drink strong beer, that he might be strong to labor. I endeavored to convince him that the bodily strength afforded by beer could only be in proportion to the grain or flour of the barley dissolved in the water of which it was made; that there was more flour in a pennyworth of bread; and therefore, if he would eat that with a pint of water, it would give him more strength than a quart of beer. He drank on, however, and had four or five shillings to pay out of his wages every Saturday night for that muddling liquor; an expense I was free from. And thus these poor devils keep themselves always under.