patrick.net

  new post
register or log in

patrick.net's 40 proposals »

10,734 registered users, 2 online now: bob2356, justme

The distinction between good debt and evil debt

By golfplan18   2013 Jan 7, 11:26pm   ↑ like (1)   ↓ dislike   773 views   4 comments   watch (0)   share   quote  

http://ochousingnews.com/news/the-distinction-between-good-debt-and-evil-debt?source=Patrick.net

I make no secret of my disdain for the behavior of bankers during the housing bubble. I’m not so extreme that I consider all borrowing and lending to be evil; however, I draw a clear distinction between what I consider good debt, useful for economic efficiency, and bad debt, useless and unproductive that results in misallocations of capital and human suffering. Surprisingly enough, the line separating the two is clear and easy to calculate and quantify.

#housing

Comments 1-4 of 4     Last »

1   Oil Can   2013 Jan 7, 11:33pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

My grandparents were old school and believed ALL debt was bad. But that is the view forged by the Depression...the first one.

2   zzyzzx (49/49 = 100% civil)   2013 Jan 7, 11:42pm  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

I also think that there is no such thing as good debt. Calling something a good debt is really just someones justification for going into debt.

3   everything   2013 Jan 8, 12:03am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

Neat, an article i don't need to read since I don't do debt, some creditor gave me my .. what is it?, credit score the other day, I'm a 808, whatever that means.

4   fedwatcher   2013 Jan 12, 2:53pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

There is a case for "good debt". "Good Debt" is used to purchase an asset that creates income greater than the servicing costs of the debt. "Bad Debt" does not. What many fail to recognize is that the house you live in is a consumable liability.

Many do not like the posts from the successfull real estate investor in Scottsdale, AZ. However, he has taken on "Good Debt". You cannot do the same in much of California.

Comments 1-4 of 4     Last »

Watch comments by email

home   top   users   about   contact  
#investing   #housing   #politics   #humor  
housing crash   thunderdome   sexy pix   site suggestions  
best comments   ad hominem comment jail   patrick.net on twitter   random post  
please recommend patrick.net to your enemies