3 ms·

True, but that is not the situation most of humanity is facing.

• necovek 2y ago
  I read that as an example to illustrate a point: it could also have said debt of $1000 with a debt ratio of 0.1 which is still pretty resilient.
  • falcolas 2y ago
    Resilient? Sure. Realistic for anyone with only $10k in assets? Not even remotely. Not in the market we have today. There are too many people who are using debt just to get their basic needs met, let alone something with enough permanence to be considered an asset.
    • mym1990 2y ago
      We're just using arbitrary numbers to demonstrate a point, we aren't trying to assess anyone's actual financial health.
• mym1990 2y ago
  That was exactly my point...a million dollars of debt is astronomical for the majority of people, but adding another data point such as DTA or DTI would make for a clearer picture of what the debt load actually is. Its like putting down a 100kg kettle bell and asking a group of people "is it hard to lift"? For the average person sure...but you're going to get a variety of answers if you put that kettle bell in front of kids vs a group of gym rats. Edit: I guess a smaller amount like 10k USD might be better to illustrate the point.