Subject:
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A hypothetical economics question...
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Newsgroups:
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lugnet.off-topic.debate
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Date:
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Wed, 27 Feb 2002 16:18:56 GMT
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Viewed:
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180 times
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What would happen if all debts public and private were just plain
cancelled as of, say, 1/1/2002? I choose an already-passed date so that
there couldn't be a mad dash to accrue huge debt in hope that it would be
eliminated. In all seroiusness, what would be the effects? Credit card
companies, I suppose, would suffer mightily (though I've heard that the
monthly point-of-purchase service charges are a greater revenue source than
cardholder-finance-charges). Sallie, Fannie, and Ginnie Mae would likewise
take quite a pinch of course. But after the dust settled, would we be
better off or worse? I've read in unconfirmed sources that private consumer
debt in the US approaches that Federal debt for sheer magnitude, but I can't
confirm that figure.
For the moment, I'm not concerned about "the Fed can't interfere with
private debt," since this is a theoretical question. I'm also aware that
international debt would still need to be addressed, and that the debate
over the appropriate as-of date would be phenomenal. Any thoughts?
Dave!
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Message has 5 Replies:
 | | Re: A hypothetical economics question...
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| (...) I think it would cause economic collapse. One question you would have to ask is what really do you mean by debt? If I buy stock in a company which is trying to raise capital, is that a debt or not? One serious problem is that you would (...) (22 years ago, 27-Feb-02, to lugnet.off-topic.debate)
| | | Re: A hypothetical economics question...
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| (...) Dave! are you coming over to the "Fight Club" side of debate? This is exactly what happens at the end of the movie...my fav part. This is all part of an ancient custom, in the bible it is known as The Feast of Jubilee -- its celebration (...) (22 years ago, 27-Feb-02, to lugnet.off-topic.debate)
| | | Re: A hypothetical economics question...
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| No way. I spent all my adult life avoiding debt (other than my mortgage - and the rate I pay on that is *less* than I get on my savings). I don't see why I should pay for others getting bank loans to play the stock market. (...) I'm sure I read (...) (22 years ago, 28-Feb-02, to lugnet.off-topic.debate)
| | | Re: A hypothetical economics question...
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| (...) I'd quit my job. (...) Many wealthy people would lose their perpetual income streams. Many lower middle class people would lose their perpetual debt streams. I'd like to change your scenario a little. What would happen if the place where (...) (22 years ago, 4-Mar-02, to lugnet.off-topic.debate)
| | | Re: A hypothetical economics question... (long)
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| (...) I think that there is a misconception about the role debt plays in the economy and what interest actually is. Here is some basic financial theory (A good way to get this is to have you company pay for you to get an MBA (U of Michigan) :-)) (...) (22 years ago, 5-Mar-02, to lugnet.off-topic.debate)
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