Yes they did. Default is a real thing and that's the risk you earn a premium for taking. On equity the price of the asset can change, on debt you either secure it or charge a rate of interest that reflects your assessment of the risk. Hence the shitty rate of interest on savings accounts - your principal is guaranteed up to a fairly large amount so you earn less.
There's a big difference between default (one party not paying because of difficulty or choice not to) and a deliberate mass social decision to say "oh, let's just forget the whole debt thing" across the entire economy.
Lumping the two cases together is an unjustified equivocation.
Comments
Yes they did. Default is a real thing and that's the risk you earn a premium for taking. On equity the price of the asset can change, on debt you either secure it or charge a rate of interest that reflects your assessment of the risk. Hence the shitty rate of interest on savings accounts - your principal is guaranteed up to a fairly large amount so you earn less.
There's a big difference between default (one party not paying because of difficulty or choice not to) and a deliberate mass social decision to say "oh, let's just forget the whole debt thing" across the entire economy.
Lumping the two cases together is an unjustified equivocation.