Here’s a fascinating video discussion about the effects of huge debt – both public (called sovereign debt since it is national goverment debt) and private – on the Euro.
Thought-provoking quote on that video from John Mauldin: “Spain is too big to save.”
Another quote on debt is from Mish: “Debt is not wealth.” Here’s a long list of his commentaries on the related subjects of money, debt and wealth. Check out, especially, the March 14, 2010 post.
These are particularly important concepts to consider when deciding whether to get a mortgage, buy a car by borrowing, or put cash into the bank (that pays from 0.05 percent to 0.75 percent interest.
Or does an investment in a stable, mature company with sales all over the world that has paid increasing dividends for decades look like a possibly better way to use spare cash?
Just a thought.