4 ms·

Equating the natural history of "interest rates" with that of debt / credit relations gives a hint of why you might not have liked the Debt book. Anecdotally,

Equating the natural history of "interest rates" with that of debt / credit relations gives a hint of why you might not have liked the Debt book. Anecdotally, modern day bankers and economists get a real shock when he discusses the long historical relation of debt with slavery. Their further response to the book is generally tainted by that unease. The rarefied world of high finance and macroeconomics (while well endowed with "research" and sophistry) has generally avoided to take responsibility for both human and physical (environmental) costs of the financial / economic systems they rationalize. That is a societal debt that is now becoming overdue with unknown consequences.

datavirtue 5y ago
Hence our deeply rooted tradition of bankruptcy and laws prohibiting debtors' prison.
- streamofdigits 5y ago
  This tradition an almost uniquely US phenomenon. "Around the world, people are less forgiving about debt forgiveness than they are in the United States" [0] Now consider the implications of a globalized economy where consumption in rich countries is underwritten by debt peonage. "The International Labour Organization (ILO) estimates that $51.2 billion is made annually in the exploitation of workers through debt bondage".[1] [0] https://www.bc.edu/content/dam/files/schools/law/lawreviews/journals/bciclr/28_1/01_TXT.htm https://www.bc.edu/content/dam/files/schools/law/lawreviews/... [1] https://en.wikipedia.org/wiki/Debt_bondage#South_Asia_2 https://en.wikipedia.org/wiki/Debt_bondage#South_Asia_2
  - mbg721 5y ago
    My understanding is that home mortgages are also more borrower-friendly in the US than elsewhere (e.g., fixed interest rates for 30 years).
    - PeterisP 5y ago
      Another aspect of how home mortgages are more borrower-friendly in US is that in many states of USA if you default on your mortgage, then after foreclosure the debt is considered settled; while in many other countries the mortgage is just "extra" collateral, so if you default then the mortgaged property is auctioned, but if the proceeds do not cover the whole debt, the remainder still has to be paid in due term and/or accrues extra penalty interest; so a housing bubble followed by a mortgage crisis hits borrowers more and banks less.

datavirtue 5y ago

Hence our deeply rooted tradition of bankruptcy and laws prohibiting debtors' prison.

streamofdigits 5y ago
This tradition an almost uniquely US phenomenon. "Around the world, people are less forgiving about debt forgiveness than they are in the United States" [0] Now consider the implications of a globalized economy where consumption in rich countries is underwritten by debt peonage. "The International Labour Organization (ILO) estimates that $51.2 billion is made annually in the exploitation of workers through debt bondage".[1] [0] https://www.bc.edu/content/dam/files/schools/law/lawreviews/journals/bciclr/28_1/01_TXT.htm https://www.bc.edu/content/dam/files/schools/law/lawreviews/... [1] https://en.wikipedia.org/wiki/Debt_bondage#South_Asia_2 https://en.wikipedia.org/wiki/Debt_bondage#South_Asia_2
- mbg721 5y ago
  My understanding is that home mortgages are also more borrower-friendly in the US than elsewhere (e.g., fixed interest rates for 30 years).
  - PeterisP 5y ago
    Another aspect of how home mortgages are more borrower-friendly in US is that in many states of USA if you default on your mortgage, then after foreclosure the debt is considered settled; while in many other countries the mortgage is just "extra" collateral, so if you default then the mortgaged property is auctioned, but if the proceeds do not cover the whole debt, the remainder still has to be paid in due term and/or accrues extra penalty interest; so a housing bubble followed by a mortgage crisis hits borrowers more and banks less.