Throughout history, every time loans are invented to pay for something, the price skyrockets. House, Cars, Education... except credit cards. What credit cards did is flatten the salary curve, filling the gap between where salaries should be if they increased as much or more than inflation and the cost of living, with debt.
Debt is a powerful tool when used correctly, but most people are unskilled in tool use, financial equations and themselves thus, debt is a Market for Lemons.
Consumers do not know what they are buying. They are buying cash and paying for it with future income.
People are generally more optimistic about their futures and irrationally excited about what they consume.
The banks have been allowed to sell cash with impunity. We have to stop that. We're just cooking the books as an entire society.
Debt is a powerful tool when used correctly, but most people are unskilled in tool use, financial equations and themselves thus, debt is a Market for Lemons.
Consumers do not know what they are buying. They are buying cash and paying for it with future income.
People are generally more optimistic about their futures and irrationally excited about what they consume.
The banks have been allowed to sell cash with impunity. We have to stop that. We're just cooking the books as an entire society.