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In the absence of credit, if everyone had to pay with everything in cash, almost no one would have a home or car. It's stability of ability to service debt tha
by sacnoradhq 4y ago
In the absence of credit, if everyone had to pay with everything in cash, almost no one would have a home or car.
It's stability of ability to service debt that matters, not the debt itself.
High debt / income ratio at the micro level is bad, of course.
- yakubin 4y agoPeople can’t pay in cash due to other people paying with debt, which artificially inflates prices.