T Nation

Wiping Out All Consumer Debt?


#1

Does any of you think it would be a good idea for all consumer debt to be wiped out that includes credit cards, student loans, ect. you name it. Do you feel it would be good or bad for the economy?


#2

Lol does it really matter, since it would never happen?

Realistically, what WOULD probably happen is, the economy would initially crash, it would then make a temporary "rebound" once everyone started spending themselves back into debt like crazy, then once they reached their credit limits [again], the economy would crash [again], because the average American is fucking stupid and has no concept of not being in massive debt, or living within their means.


#3

Yeah, lets remove responsibility from crazy debt-o-holics.


#4

Will I get free money since I have no debt myself...the idea is complete garbage. Why should irresponsible people be given a free pass.

I tell you what if the people getting their debt erased are willing to give up enough of their possessions to in essence pay for this special treatment then sure. That of course would never happen, but we can hope right?


#5

This too. All this would do is give free money to people in debt, the worst part being, the more in debt you are, the MORE FREE MONEY YOU GET! How fucking retarded would that be?


#6

No, not a good idea because he only way it could happen is by government decree and that would not be fair to the lenders. In the long run such measures would just further weaken the dollar if the government decided to paper over it -- i.e., send out checks to the lenders to cover their losses.

I do think eventually the US government is going to have to default on its debts without papering over them -- of course when it finally gets to that point the dollar will not be able to paper over anything because it will be worthless.


#7

Well alot of you seem to forget that the lenders did receive $700 billion in taxpayer money. It seems that would be more than enough to cover their losses.


#8

SOME lenders did. The irresponsible ones. That was essentially the corporate version of what you are talking about. They screwed the responsible lenders.


#9

Let me know when this is gonna happen so I can max out every credit card I can find. I mean I should get shit for free because I'm irresponsible and ignorant. I personally think food stamps and other assistance should be very, very strict and motivate people to get a fucking job and quit using their last couple bucks on cheap liquor and cigarettes.

Every month your on assistance someone paying for your ass should get to burn you with a hot sticker or something comparable.


#10

This idea is terrible but I would rather the stimulus money have been evenly divided between the citizens rather than how it was spent. Of course I would have rather they had done nothing.


#11

And I'd even more rather they not take the money in the first place.


#12

Would it have been possible to give that stimulus money to the public and put stipulations on what you can buy? Buying from small businesses and other economically friendly decisions would be allowed and blowing money on dumb shit is punishable by law if you take the money.


#13

How about they just stop taking money from us that they don't need?


#14

Here's how and why that would be bad. I'll use me as an example.

I worked at a small fabrication business. We manufactured frames for church windows, supplying stained glass shops and installers. A bunch of these folks are just like everybody else, dumb with money. They got in over their heads with debt and finally said "Fuck it, I ain't payin." and declared bankruptcy.

Now the shop I worked in manufacturing these items is shut down, and everybody there is unemployed.

No debt doesn't equal money, and you can only wipe the slate and give do-overs so far up the chain before the top tier manufacturers get beat and have to close up shop.

Given the exclusive nature of the material profiles we used, they could not be produced without a guaranteed minimum order quantity or payment for materials prior to production. Even with a deposit to cover time and materials, without those net 90's coming in, there is no money to cover the purchase of more raw materials.

Once again, no debt does not equal money.

To buy real assets with real value you need real money, and robbing Peter to pay Paul only works when you are Paul.


#15

This should be done according to the Bible and the Jubilee. If lenders knew all debts were cancelled on a certain year, debt would be very short term and easy to pay back. No debt bubbles, no years of economic serfdom.

an economy built on debt then could never happen. It would have to be built on effort and production...how shocking!!!