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> why do we need so much lending for consumption? Is there any benefit at all in financing consumption with debt? The benefit is for corporations. And allegedl
by alecco 12y ago
> why do we need so much lending for consumption? Is there any benefit at all in financing consumption with debt?
The benefit is for corporations. And allegedly that trickles down to people/employees. But that's obviously not the case for this current recovery in US. It's a sham.
- refurb 12y agoThe benefit is for corporations. I don't think that's true. Low interest rates benefit everyone as the cost of lending decreases.
- jes 12y agoDo low interest rates benefit savers? For example, senior citizens trying to live off the interest earned from their savings?
- refurb 12y agoIn the short-term it certainly benefits consumers who are using debt to finance their consumption (e.g. houses, cars). In the long run (at least for the housing market) the benefit goes away as housing prices adjust to reflect lower borrowing costs.