I think he's saying that when you borrow money, it stimulates the economy and increases people's incomes. That allows people to borrow even more money. Which stimulates the economy and increases people's incomes even more. It's a feedback loop and we saw it break in 2008.
An example is people "using their homes as ATMs" during the housing boom. Easy credit drove up the prices of homes, people used the increase in net wroth to take home equity loans, other general debts, or buy investment properties, which in turn drove up the price of homes even more.
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I think he's saying that when you borrow money, it stimulates the economy and increases people's incomes. That allows people to borrow even more money. Which stimulates the economy and increases people's incomes even more. It's a feedback loop and we saw it break in 2008.
An example is people "using their homes as ATMs" during the housing boom. Easy credit drove up the prices of homes, people used the increase in net wroth to take home equity loans, other general debts, or buy investment properties, which in turn drove up the price of homes even more.