Debt is dumb. The childish glee coming from this author should be ignored. 2008 is coming again soon and debt holders will suffer. Please get/keep your financial house in order. Business debt is just as dangerous as personal debt.
Your overall point appears to be that a repeat of 2008 is immanent and this point can be better made without the "Debt is dumb" first sentence.
Eventually, so much debt will be accumulated that companies will not be able to pay off the interest and the bubble pops. If everyone is always in debt, there will always be a periodic crash.
I say this as someone who had enough saved to buy a car in cash: Buying it via a loan was the right choice. It boosted my credit rating and more importantly when emergencies came up I had that cash on hand.
Either rich enough where it doesnt matter, or poor enough where it doesn't matter.
In my case, my first job (at 14) required getting a ride to from a coworker with a car. Getting to university for my job working in the computer lab + my courses required either a car ride from a neighbor or 3 hours on the bus. After I moved away for my first salaried job, I needed a loan (thankfully a personal one and not from a bank - both of which are things many people don't have access to!) to cover my first month of expenses so I could move and actually start getting paid and building measurable savings, since the move already exhausted the savings I had left over after uni.
Money doesn't come out of thin air. Not everyone starts their working life with access to enough money to just buy a car (even used!) and rent an apartment.
You answered your question with the second paragraph...?
>In my case, my first job (at 14) required getting a ride to from a coworker with a car...
You chose to go to university in lieu of financial stability. That is how savings is not acquired. Save the money, then go to school. Buy things you can afford, including school.
>Money doesn't come out of thin air. Not everyone starts their working life with access to enough money to just buy a car (even used!) and rent an apartment.
Babies are born without jobs or means to clothe and shelter themselves, but we have what are called families, communities, and society. Each melds together to form a fabric of civilization that provides in one way or another the necessities of life. Start working as young as possible, save up, spend thrift.
You may want to see the following illustration by Ray Dalio about how debt complements the economy:
They are barely related to the point they should probably even be called different things.
Business debt is to buy equipment to make stuff to sell at a profit.
Personal debt to buy a nice boat.
I have no idea why people __LOVE__ making these statements. 2008 was something that affected mostly the US and while it affected the rest of the world to a certain degree, overall very little changed.
Before jumping on my throat, hear me out: There have been several significant financial events since then: the European debt crisis, then Portugal(which is relatively small on a global scale), same with Ukraine and Venezuela, Russia(still going 5 years later), Brazil and those are just off the top of my head. What I'm trying to say is that financial crisis occur almost every year. Keeping your finances tidy is a good life advise but prophecies shouldn't be the motivation for it.
US is back on top. How's Italy, Greece, Spain etc doing?
Spain's growth rate has been what, 0%? Greece is totally screwed, and there's a strong set of evidence to say Brexit was a direct result of the 2008 crisis (because they pushed back so hard on austerity.)
Nah. The only selling point on the referendum was immigration. The only one people really cared about anyway.
Italy and Spain are recovering - new businesses are emerging, unemployment in Spain is down by 12% from 26%, Italy is at ~9.5% unemployment.
Comparing several small countries to the US is completely pointless given the difference in population, area, industry , resources and so on...
Regardless, nobody can tell the future - there are simply too many unknowns to consider. We will certainly have more good times and bad times. As to when they come, predict all you want, but historically analyst predictions have an awful track record (historically, expert predictions are wrong most of the time https://www.cxoadvisory.com/gurus/ ). The occasional person who guessed right previously (there will always be some) are then raised up as oracles.
There will be a downturn, sooner or later. Predict it every year and eventually you go down as the person who predicted the downturn.
That’s the story; hard to say how well it describes reality but there’s surely a modicum of truth in there at least.
So, unless you believe you can time the market, it doesn't appear like there is much to do except to make sure you have a rainy day fund.
All my other money goes into the system.
This only makes sense if you are making a sharp distinction between the 2008 US crisis and the European debt crisis, which is probably not what the parent meant. That's why people would strongly disagree with you.
This attitude is dumb.