“Debt attracts debt.”
I think this sums it up. The more debt you have, the more debt you don't mind having. And debt is so prevalent and inexpensive nowadays; people, corporations and governments use it frivolously.
Debt’s main purpose is to be used productively so the future earnings growth from the projects the debt was used for offsets the debt service payments. This use of debt is constructive in building modern economies. But debt nowadays is increasingly used for recreational boats, dividend recapitalizations and inefficient government programs.
I’m waiting for inflation to finally kick us in the ass, then central banks tighten monetary policy, and this debt-monetization fueled capital-asset party comes to an end, and takes the global economy with it. I’m Mr. Optimism today...lol.
This is a damn good post @tarazkp!
It is like stretching the stomach to fit more food.
Yes. Consumption of things that will only ever go down in value - thinking that the "experience" of being on a tropical beach is worth the debt.
:D
Perhaps I am rubbing off on people? I am generally optimistic that we can do something, pessimistic as I think we won't. :)