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> We owe ourselves 356% of what we produce every year? The debt is not all due next year, so why not? As long as it’s serviceable, the amount of outstanding de
by quickthrowman 6y ago
> We owe ourselves 356% of what we produce every year?
The debt is not all due next year, so why not? As long as it’s serviceable, the amount of outstanding debt is kind of meaningless.
- ejb999 6y ago>>As long as it’s serviceable, the amount of outstanding debt is kind of meaningless. Serviceable now or serviceable forever? its not the same thing, and its the kind of thinking that convinces someone who just got a small bump in pay to go out and lease a new $800/month car because they can affords the payments today, or buy an expensive house at the top of the market, because in their opinion house prices only go up, and their job will only ever pay more - neither of those things are always true, and when the conditions change, they can change fast and have a huge domino effect.
- quickthrowman 6y agoCorporations and governments are responsible for nearly all the debt, via bond issuance. Most bonds have a fixed coupon, not adjustable rates. When a household can sell bonds to investors, then you can logically compare household debt vs corporate/government debt. I know I can’t issue bonds, nobody will buy them! Also, one persons debt is another person’s asset. Yea, some consumers make bad purchasing decisions, that has nothing to do with the ability of corporations and governments to service bond interest payments.