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> When someone "buys" something using debt, it must be paid for many times over. You are comparing amounts of money at different points in time without discoun
by pg314 9y ago
> When someone "buys" something using debt, it must be paid for many times over.
You are comparing amounts of money at different points in time without discounting them to their NPV. That is nonsensical. Ironically, if you go to get a mortgage at a bank, they sometimes use the same arguments to steer you to their preferred mortgage (look how much more you would pay in total at the end of the ride for option A vs option B, without take the time value of money into account).
- macawfish 9y agoI don't just mean that it must be paid many times over because the loan appreciates. I mean it in the sense that the values of the stuff being purchased with debt get skewed higher, so that people have to take more debt just to afford that stuff. I also mean it in the sense that people having nothing to do with the debt are coerced into paying interest on debts that others incurred. With homes, it turns our places of respite into worrisome baggage.