Menu
Forums
New posts
Search forums
What's new
New posts
New media
New media comments
New profile posts
Latest activity
Media
New media
New comments
Search media
Members
Current visitors
New profile posts
Search profile posts
Log in
Register
What's new
Search
Search
Search titles and first posts only
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Forums
Cattle Boards
Beginners Board
Get READY for a "BIG TRAIN WRECK"??
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Help Support CattleToday:
Message
<blockquote data-quote="Brandonm22" data-source="post: 587251" data-attributes="member: 7645"><p>And if Lehman Brothers had borrowed 25% of what they have borrowed, they probably still exist today. The problem with carrying too much debt is that your cash flow gets tied up trying to service your debts. What's worse leaving money on the table versus giving away all your money in debt service. I think there is a different answer for every business and individual. </p><p></p><p>The more I ponder the question, the more I think you are right. The Fed will have to unleash inflation. According to a housing expert on Fox Business Channel last week (I don't remember names), 16% of homeowners are "underwater" (they owe more against the house than the house is worth). Another 10% devaluation in the next year and 60% of homeowners could be "underwater" and thus unable to borrow. That IS deflation and that would be a nightmare we don't want to actually see. The only way people are going to build equity and pay off these loans is if the house increases in value and in most markets that means higher wages. The only way the Fed can create inflation is by artificially increasing the money supply.</p></blockquote><p></p>
[QUOTE="Brandonm22, post: 587251, member: 7645"] And if Lehman Brothers had borrowed 25% of what they have borrowed, they probably still exist today. The problem with carrying too much debt is that your cash flow gets tied up trying to service your debts. What's worse leaving money on the table versus giving away all your money in debt service. I think there is a different answer for every business and individual. The more I ponder the question, the more I think you are right. The Fed will have to unleash inflation. According to a housing expert on Fox Business Channel last week (I don't remember names), 16% of homeowners are "underwater" (they owe more against the house than the house is worth). Another 10% devaluation in the next year and 60% of homeowners could be "underwater" and thus unable to borrow. That IS deflation and that would be a nightmare we don't want to actually see. The only way people are going to build equity and pay off these loans is if the house increases in value and in most markets that means higher wages. The only way the Fed can create inflation is by artificially increasing the money supply. [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
Cattle Boards
Beginners Board
Get READY for a "BIG TRAIN WRECK"??
Top