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A lot of poor people, maybe most of them, have more cash-denominated debts than cash-denominated assets.
by wikfwikf 4y ago
A lot of poor people, maybe most of them, have more cash-denominated debts than cash-denominated assets.
- jbay808 4y agoIf they're poor, their debts are likely not backed by collateral - akin to credit card debt or payday loans. Those debts are at such high interest rates that inflation and rate hikes have little bearing relative to how much it already costs to sustain them. By contrast, wealthier people mostly have mortgage debt, backed by real estate as collateral. Those are at much lower interest rates and benefit from inflation.