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When Debt Becomes Cancerous

Discussion in 'The Economy' started by Chris C, 20th Feb, 2012.

  1. Chris C

    Chris C Well-Known Member

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    Thought that quote was worth sharing/discussing.
     
  2. wdongli

    wdongli Well-Known Member

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    "Debt is a two-edged sword. Used wisely and in moderation, it clearly improves welfare. But, when it is used imprudently and in excess, the result can be a disaster."

    Good observation. How could we derive logic and wise conclusion from a good start for some return if not fortune? Never think about it or get used to think linearly or feel too painful to challenge yourself? It is a problem and part of reasons we have so many experienced losers!

    GFC passes for about 3 years. Damages have done mostly. What's the time of the market night? How many people or companies have tried all to deleverage? Where is the edge which could improve your return with the leverage and people can use to get more return?

    How many people now dare to use leverage, gear, or borrowed money? How many people desperately wanted to borrow more and more at peak? When we forget the contexts and conditions, the world could be told just like a slaughter field.

    Is it logic to over-highlight on one edge which has made unaccepted results? What's common sense and logic should be used here? Truth and false have a tiny air between them. If you could not think, reading and take any assertion are the preface to kill yourself in the market!

    Why do genius lose the shirts? They are too clever on one edge and never think another edge could hurt them or cut off the way for them to catch up any good chances before the train leaves the station!