Re:Debt Worldwide Hits Record $86k per Person
by robertAngst on Saturday December 15, 2018 @06:02AM
(#18687951)
>You could say "out of thin air", but its really "out of social expectations that you pay your debt eventually"
You missed that- Since its 'out of thin air', the interest on this debt is artificially low.
When interest rates around 0, things that would otherwise be a bad decision, become feasible. Or, things that are a good idea, are sold and the cronies who get the loans make even more money.
They give a loan to someone, which means someone owes them 10,000 dollars. Now they can trade that 10,000$ worth of debt to someone else. You could say "out of thin air", but its really "out of social expectations that you pay your debt eventually"