“... The danger has always been that the rituals, the static patterns are mistaken for what they merely represent and are allowed to destroy the Dynamic Quality they were originally intended to preserve ...”
Robert Pirsig

Lila

Debt is Risk

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It is amazing how this basic truth, that every capitalist knows, about debt is veiled from public consciousness when it suits creditors:

“From the beginning, Merkel and the EU have operated from the position that because Greece took on debt, Greece now needs to pay it back. That position assumed — bizarrely, in hindsight — that debt works only one way: If you lend someone money, that money is repaid.

But that is NOT how free markets work.

Debt is not a guarantee of future payments in full. Rather, it is a risk that creditors take, in hopes of maybe being paid tomorrow.

The key word there is “risk.”

If you’re willing to take the risk, you’ll get a premium — in the form of interest.

But the downside of that risk is that you lose your money. And Greece just called Germany’s bluff.”

source

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