4 ms·

One man's debt is another man's financial asset.

by DenisM 10y ago

hack_edu 10y ago
With this attitude, you might as well just give all your money to the bankers now and just be done with it.
- 1001101 10y ago
  ... and it's gone
- idiot_stick 10y ago
  >With this attitude, you might as well just give all your money to the bankers now and just be done with it. With what attitude? Having knowledge of accounting, and that the balance sheet has two sides? If anything, ignorance of finance is how you give your money to the bankers.
  - mightybyte 10y ago
    > If anything, ignorance of finance is how you give your money to the bankers. I don't think it's quite that simple. It's probably some combination of a number of factors such as: * Inability to control one's spending * A consumer-driven culture where status is equated with material possessions * Availability of easy credit * Society not recognizing compulsive spending as an addiction
gillianlish 10y ago
which is the taxpayers "troubled asset" which has to go into a "Relief program" which somehow translates into Socialism for the hyper-rich and indentured servitude for everyone else.
- throwaway2048 10y ago
  when you default you lose your home, when they default they get a trillion dollar cheque from the government, and 10 million dollar performance bonus.
IshKebab 10y ago
Yes but those assets are owned by the rich. I'd wager increased debt correlates strongly with increased inequality.
- maxxxxx 10y ago
  The increase of consumer debt is directly correlated with wage stagnation. Someone in the 70s or 80s wages started to grow and access to loans was made easier.
- ac29 10y ago
  Those assets, if you're referring to consumer debt, are owned by anyone with a retirement account (or pension) with financial sector stocks in it. Considering that just about any diversified portfolio probably has a broad based US equity portion, that is probably the majority of employed people.
  - erubin 10y ago
    I think you may be overestimating the number of employed people who are invested in the markets to any real degree.
rlpb 10y ago
Not necessarily, thanks to "leverage".
mcguire 10y ago
https://en.m.wikipedia.org/wiki/Debt_deflation https://en.m.wikipedia.org/wiki/Debt_deflation

One man's debt is another man's financial asset.

by DenisM 10y ago

One man's debt is another man's financial asset.

hack_edu 10y ago

With this attitude, you might as well just give all your money to the bankers now and just be done with it.

1001101 10y ago
... and it's gone
idiot_stick 10y ago
>With this attitude, you might as well just give all your money to the bankers now and just be done with it. With what attitude? Having knowledge of accounting, and that the balance sheet has two sides? If anything, ignorance of finance is how you give your money to the bankers.
- mightybyte 10y ago
  > If anything, ignorance of finance is how you give your money to the bankers. I don't think it's quite that simple. It's probably some combination of a number of factors such as: * Inability to control one's spending * A consumer-driven culture where status is equated with material possessions * Availability of easy credit * Society not recognizing compulsive spending as an addiction

gillianlish 10y ago

which is the taxpayers "troubled asset" which has to go into a "Relief program" which somehow translates into Socialism for the hyper-rich and indentured servitude for everyone else.

throwaway2048 10y ago
when you default you lose your home, when they default they get a trillion dollar cheque from the government, and 10 million dollar performance bonus.

IshKebab 10y ago

Yes but those assets are owned by the rich. I'd wager increased debt correlates strongly with increased inequality.

maxxxxx 10y ago
The increase of consumer debt is directly correlated with wage stagnation. Someone in the 70s or 80s wages started to grow and access to loans was made easier.
ac29 10y ago
Those assets, if you're referring to consumer debt, are owned by anyone with a retirement account (or pension) with financial sector stocks in it. Considering that just about any diversified portfolio probably has a broad based US equity portion, that is probably the majority of employed people.
- erubin 10y ago
  I think you may be overestimating the number of employed people who are invested in the markets to any real degree.

rlpb 10y ago

Not necessarily, thanks to "leverage".

mcguire 10y ago

https://en.m.wikipedia.org/wiki/Debt_deflation https://en.m.wikipedia.org/wiki/Debt_deflation