Titolo

Seven Myths. Nay: Seven Follies. (I)

1 commento (espandi tutti)

From a highly theoretical standpoint, and even on such troubled times, wouldn't it be also reasonable for American consumers to invest part of their income on something capable to produce extra revenues on a reasonable amount of time, (being this company shares or just a vegetable plot) instead of rushing up to pay back their debt all the way?

Sure it would: do you have a time machine to bring them back to the past, so that they can erase having borrowed for consumption in first place? If you don't, the issue is pretty moot... If they just stop servicing their debt now, the cash flow they interrupt will not be used for productive investment by someone else downstream, thus cancelling the benefit of their own investment.