Someone watch this and lemme know how much is pure western c o p e.
When you double the income and prices, creditors can also change the interest rates (the price of the money), and increasing the interest rate (making money more expensive) hurts the debtors and benefits the creditors, and vice versa.
I know I’m late here but wanted to ask you, are you making a distinction between existing borrowers and new borrowers? if you already got the thing with the loan - the car, the house - and it’s a fixed interest rate, then the debtor benefits from inflation because the dollars they are paying back are worth less. Is that correct? In the other example you said borrow 200 but now is only worth 100, is that for more of a “liquid” loan, revolving credit kind of thing (not sure the terms) - but the kind of loan that backs biz- industry
I appreciate all your effort-comments on this topic.
Regarding 2008 housing
Obama could have bailed out the banks AND let homeowners stay in their homes by erasing the underwater portion, but nope that would send the wrong message. We were knocked out of out home with a short sale and some rando bought it for half what we paid. Literally zero economic difference. The amount was wiped out the same as if we had stayed. “Puritanical morality” for thee but not for me.
