Credit: the Global Social Welfare System

What is credit?

Borrowed money.

Why do you have to have to borrow it?

Because you likely don’t have it.

 

Credit has become the world’s social welfare system; a blank cheque people could write for themselves. Easy to sign-up and even easier to expand the limit of.

Less and less does it matter if your initial asset collateral still exists. The more debt you have, it appears the more you may be able to take on. So lenders lend, and they really shouldn’t have.

 

Should we expect that soon retailers will identify, allow and deny customers? Probably.

 

PD