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Yes, overborrowing, but peopled overborrowed so they can spend more, not to invest.
by nextparadigms 15y ago
Yes, overborrowing, but peopled overborrowed so they can spend more, not to invest.
- Anechoic 15y agoA lot of that overborrowing was to buy homes, a commodity which (according to conevtual wisdom) always increases in value. So yes, a lot of that overborrowing was for investment.
- lyudmil 15y agoPeople kept spending because there were investments available (housing) which outperformed bank interest rates, 401k's, and pretty much everything else. There was no incentive to save because they were saving merely by owning their homes. This happens when there are bubbles. I don't see how the Bitcoin economy is immune to them, so you wouldn't have actually avoided what happened merely by using a different currency.