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No worse than buying material goods on credit, which a huge number of people do. If anything it's less bad, as at least with a gamble you might get the money ba
by corin_ 13y ago
No worse than buying material goods on credit, which a huge number of people do. If anything it's less bad, as at least with a gamble you might get the money back to pay off the credit. Of course, whether you value a TV or a chance of getting rich more is subjective.
edit: I stand corrected, good points below. But it is still very possible to use credit to speculate without it being a huge problem, e.g. if you could afford $x over 3 months but think you need to spend it all now to see the benefits then the slight interest on the credit just becomes part of your risk, but doesn't mean you'd be in trouble if it doesn't work out, other than losing money which is a risk regardless.
- pistle 13y agoUh... yeah it is worse than material goods. Someone will give you $5 for a TV or you could at least enjoy kicking it down a hill. With a devastated, leveraged position in an illusion, you ain't got squat. Once the bubble pops, there is 0% chance of rich or break even. You can wait forever, but the lack of diversification means you are 99.9% likely to be holding the thing that never recovers. A broad market recovers. A speculative vehicle is dead. No chances. Hold long :~)
- atwebb 13y agoMost material goods are bought with the knowledge that their value will depreciate significantly and quickly. Investments are not seen that way so people will, foolishly, bet money they don't have and a good indicator of that is putting it on plastic.