The Economy

Point number 1: Contracts are binding.  When adults enter into a legal contract to borrow money under certain terms, the borrower is bound by the contract unless the lender agrees to a change.  If a change in terms is agreed upon, then there are new expenses to rewrite the contract.  The original borrowed  money is still owed.

People who borrow money must repay the money or surrender assets to cover the loan amount. If job loss, bad health, credit card debt, divorce, newborns, or whatever causes the debtor to get in arrears, the borrowed money is still owed up to the settlement of one's estate at time of death. (bankruptcy might excuse some debt repayment) 

Point number 2:  Even if 2 to 3 million new jobs are created, that will only return employment to levels of a few years ago.  The jobs will most likely be at lower pay than before and old debts will need to be repaid with earnings from the so called new jobs.  The repayment of old debt will limit spending on new "stuff" that creates growth in the economy.

Point number 3:  I hear commentators and leaders say "when banks and lenders start lending again ..." as if to imply the economy will then recover.  I believe that banks and lenders will not return to lending money to high risk borrowers as many did in the past.

The United States economy will continue to slow and debtors will be enslaved for a long time.

Conclusion:  People should not borrow money except for one modest shelter and barely adequate transportation.  Borrowing to start or expand a business venture is one other exception.  Education loans should be avoided.

Have a good week!