Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

> why do we need so much lending for consumption? Is there any benefit at all in financing consumption with debt?

The benefit is for corporations. And allegedly that trickles down to people/employees. But that's obviously not the case for this current recovery in US. It's a sham.



The benefit is for corporations.

I don't think that's true. Low interest rates benefit everyone as the cost of lending decreases.


Do low interest rates benefit savers? For example, senior citizens trying to live off the interest earned from their savings?


In the short-term it certainly benefits consumers who are using debt to finance their consumption (e.g. houses, cars).

In the long run (at least for the housing market) the benefit goes away as housing prices adjust to reflect lower borrowing costs.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: