 | | 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) :-)) (...) (23 years ago, 5-Mar-02, to lugnet.off-topic.debate)
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| | Re: A hypothetical economics question... (long)
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(...) Unless he shared ownership with 99 other folks each of whom could come up with $1K. Joint ownership instead of borrowing, right? (...) Actually, that's just getting a loan. Finding partners who want their share value to increase seems more (...) (23 years ago, 6-Mar-02, to lugnet.off-topic.debate)
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| | Re: A hypothetical economics question... (long)
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(...) loans. If the individual defaulting has trouble with credit, what happens when the entire system (everybody) defaults. Think of the people that were reluctant to put money in the bank after the Great Depression and all the bank defaults. The (...) (23 years ago, 6-Mar-02, to lugnet.off-topic.debate)
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| | Re: A hypothetical economics question... (long)
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(...) Then lenders will be reluctant to loan. But that doesn't mean that they won't do it ever again under any circumstances. They'll just make the loan's terms more favorable to account for the risk. (...) I understand that this is what the FDIC (...) (23 years ago, 7-Mar-02, to lugnet.off-topic.debate)
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