"Americans' debt level notches a new record high
Americans' debt level notched another record high in the second quarter, after having earlier in the year surpassed its pre-crisis peak, on the back of modest rises in mortgage, auto and credit card debt, where delinquencies jumped."
Is it that bad? Really? Nobody cares if the borrowers don't pay or can't pay as the central bank will just print more money IF the big banks n those systematically critical banks were to go down!!
The smartest borrowers r those who borrowed big so the banks won't dare to push them to default!! They will lend them some more just to cover the interest n keep those credit still performing!!
Such is the irony n deep contradiction of credit multiplier effect. When a dollar can generate many more by lending that dame dollar to many more people as long as someone is paying the interest n somehow borrow or earn enough principal to pay when the original is due!!
If the end comes tomorrow, the borrowers win. The savers lose! The lenders don't care as l9ng as they had enjoyed their lives living on the "commissions" fr lending while it lasts!!
Confused? U r not alone!!
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