Yep, I sure do. All I can figure is that Americans are eternal optimists. They always figure things will be better in the future.
That’s why people take out mortgages, or school loans, or borrow money to start businesses. That’s why unemployed job-seekers will buy a new suit on credit, so that they can go on interviews.They figure that borrowing money against future earnings will enable them to raise their incomes and pay that money back.
Back in the 1980s, there was a real fear that the US would never be able to balance its budget again. But things change. What looks impossible today can seem relatively achievable in another five years.
As long as the money that’s borrowed is used for productive investment instead of mere present-day consumption, I don’t have an issue with deficit spending. It’s how I started my small business, and it’s paid off.
So it would be absolutely fine in your view for a couple making $35,000 to take out a mortgage on a $500,000 home?
Maybe we should look at from the lenders point of view because that's what We The People really are concerning the debt. Do you think it self-evidently unwise to loan money to a couple making $35,000 for a mortgage on a $500,000 home?