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How is it a debt reset? You still owe on the debt you have now. If you bought something that debt isn’t forgiven just because of this virus. There might be a reassessment of asset value but my house I still owe what I owe.
How is it a debt reset? You still owe on the debt you have now. If you bought something that debt isn’t forgiven just because of this virus. There might be a reassessment of asset value but my house I still owe what I owe.
Our entire system is debt based. There will be a reset of asset prices and thats it. lets just hope this thing fades away. The market is resetting, maybe some resetting in real estate. But so what, these two areas were over priced anyway.
So I have a question trying to keep it on topic. Yesterday I was watching Jim Cramer and he said that if the feds did not lower interest rates Sunday and do the QE banks would not have opened Monday morning.
I guess a lot of this boils down to a simple question: What is the value of a bond when the issuer no longer has the cash flow necessary to fund its operations and make the interest payments?
Once again; Gold is the currency of kings. Silver is the currency of noblemen. Barter is the currency of serfs. Debt is the currency of slaves.
The ancient Hebrews had a jubilee every seven years when all debt was cancelled out.There is an old depression era tale about a town assessor coming to a farm and telling the farmer he must be doing pretty well to afford a hired hand.
"Oh, he ain't a hired hand. He works for me til his back wages add up to the worth of the place. Then I go to work for him."
Our entire system is debt based. There will be a reset of asset prices and thats it. lets just hope this thing fades away. The market is resetting, maybe some resetting in real estate. But so what, these two areas were over priced anyway.
Reset of prices isn’t a reset of debt. It’s still debt. The only good thing about this is if you’re buying something you’re most likely gonna get a good deal out of it. But unless you got cash in hand or swing one hell of a paycheck and credit you’re most likely taking a beating in your investments right now like everyone else. (And that good deal on something is gonna be a car or a house or some consumer good or service. But not all people buy extravagant things in a bad economy. )
That’s the thing. Some who was looking to buy housing but was “waiting for this market to drop” is most likely unable to buy right now due to uncertainty, job loss etc. only strong buyers are gonna be able to buy in a bad economy. Everyone else will be on the fence shaking their fists.
There may be some price resetting while this thing runs through but as soon as it’s done, the market will rev back up. The only reason it killed the economy is because people stopped traveling and the government started shutting down areas and businesses due to the CV19. The economy doesn’t shut down when we have flu season. It never has. This isn’t a normal flu. If it was it would still be full throttle economy.
Quote:
Originally Posted by Northern Maine Land Man
Once again; Gold is the currency of kings. Silver is the currency of noblemen. Barter is the currency of serfs. Debt is the currency of slaves.
The ancient Hebrews had a jubilee every seven years when all debt was cancelled out.There is an old depression era tale about a town assessor coming to a farm and telling the farmer he must be doing pretty well to afford a hired hand.
"Oh, he ain't a hired hand. He works for me til his back wages add up to the worth of the place. Then I go to work for him."
Some people don’t have actual gold. Even if they invested in gold they don’t hold actual gold. These are all great analogies but truthfully there isn’t much that’s a safe bet. Gold is great but I’ll bet if you’re starving you’ll trade that ounce of gold for a fried chicken
I just want to point out that I am not advocating for a "debt reset", I literally do not even have a clue what that would look like. Would it just be government debt? With how complicated the world economy is I can't see how it is possible without starting WW3.
I just want to point out that I am not advocating for a "debt reset", I literally do not even have a clue what that would look like. Would it just be government debt? With how complicated the world economy is I can't see how it is possible without starting WW3.
I would like to know if consumer debt is part of our "national debt" number on the "clock".
How is it a debt reset? You still owe on the debt you have now. If you bought something that debt isn’t forgiven just because of this virus. There might be a reassessment of asset value but my house I still owe what I owe.
Debts are either serviced, repaid, or defaulted. If someone owes a lot more on a mortgage than the house is worth, it’s totally rational for them to walk away from it. That “resets” the debt and the mortgage holder finds out what they actually have when the house is sold in foreclosure.
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