atans1

Perspective on S’poreans’ Debt, Leverage

In Economy, Financial competency on 13/02/2016 at 2:45 pm

PAPpies will say no worries, as assets cover debts. But that sounds like what the highly leveraged tycoons said before 1997, 2008 and the credit crunches in the 60s, and 70s and 80s.

And in a deflationary world, the notion of “safe as houses” doesn’t work as an investment thesis. You will pay and pay while the property value depreciates.

Update on 16 Feb at 7’ooam: Debt is eternal.

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