Quote:
Originally Posted by AmeliaG
The reason membership site rebilling fell off a cliff in 2008 was all the banks being induced by leverage regulation to turn off tons of credit cards of perfectly good payers, just so the banks could get their bailouts and continued mortgage guarantees.
The increase in debt now is what economic recovery looks like for Main Street and the middle class in America.
Different financial analysts have very different views of ideal markers because different groups either do or do not wish to expand the prosperity of the middle class.
A college-educated employed homeowner, driving past a homeless encampment, in a late model car, will have a debt-heavy much lower net worth than the folks living in tents, under an overpass, but which of those options should be our goal in America?
|
you can help an unhealthy economy for a short while with cheap interest and more credit - that is a fact and it was done to get out of the crisis.
BUT - it have a high price later on.
no matter if one lives under a bridge or in wonderland castle - everyone have limits and sooner or later they are reached.
than is the time to pay back. and not only pay back the money also the interest on top.
these repayments reduce the PREVIOUS existing purchase budget and do not flow into the market until the debt has been repaid (what can be years or decades)
when tens of millions do that, the domestic economy lacks demand.
first the rate of inflation falls.
then inflation turns into deflation.
and a deflation costs a lot of jobs because deflation is a sign of a lack of demand and therefore leads to a reduction of production.
for less production, fewer workers are needed.
the open secret of every economy is to maintain balance.
either trump never learned that or he ignores it because he knows that this effect can last long enough to catch his successor. the stupid people won't blame him then - just like they don't blame obama for the trend, what was just continued by trump for a while, in an exaggerated way, and completely shifted the balance in a boom phase.
this bill will not only be expensive - I fear it will become unaffordable.