Using loans to solve economic problems is like drink a glass of wine hoping to get sober
June 05, 10 by Mark75[AUTOMATIC TRANSLATION - SEE NOTE]
“Use the loans to consolidate their economic condition and how to drink a glass of wine to be drunk to pass the” is a phrase of Barry Ritholtz, we really like because it shows very well the concept of how the borrowing does not solve problems economic, contrary to what some appear to think, both in terms of finance personnel and budgets. Ideally, the loans can only postpone the problems (which can mean, in the case of politicians, let them be addressed to someone else).
The loans are useful to address problems (temporary) liquidity rather than of wealth. It would be important to start keeping more in mind the distinction between the two, to improve economic sustainability and the average level of quality of life.
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