Excessive credit (in the sense that they are untenable for the borrower), is not the solution; that's what the US does and we see the result. Another problem is that at some point there must be enough capital to lend. The Ricans are screwing up their reserves and US credit is likely to be very tight, the more so as the American culture is strongly anchored in the loan and the permanent debt.
The fundamental problem of the financial crisis we are going through is that the banks have left their role: they have become digital monsters manufacturing products of insane complexity and disconnected from the production of concrete wealth: warrants, funds of funds, speculative products, ratchet life insurance with% tage of the largest increases and decreases ...
No saver knows in what sector he invests when he takes out life insurance or what it will bring him: even the "advisor" (who is only a pale, unconscious underling) does not know: he is fresh out of her BTS sales force and is happy to wear a tie while having gullible customers sign papers.
The casino stock market is only a mirage even for banks that would do well to refocus on their fundamentals: deposit collection and credit to individuals and businesses. And that's all.
Do not forget that taking a loan is above all lowering your purchasing power !!
it is debatable ... it depends on the rate. If it's a consumer loan at 18% TEG (and it's common "currency"), it's a scam.
If it is for a production plant at 8% yield with a rate of 4%, or else a rental at 4% yield with a loan at 3,5%, the power of purchase is increased and there is even constitution of a patrimony.
I understand your point of view and finally, I believe that mine is not that far apart.
Our only point of disagreement may lie in the necessity or ineligibility of interest.
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