/biz/ - Business & Finance

>>17998211
If you have a loan (most retards do and are generally overextended into credit) and the dollar deflates, you will eventually earn less money as the dollar becomes worth more, but your loan will remain the same total amount. This wouldn't be a problem if it was limited to small amounts of retail credit. It would hurt, but could be mitigated or just facetanked. The problem is that the institutions are also neck deep in debt because all the businesses and financial institutions are completely and utterly overextended into lines of credit they have no business using, leveraging every percentile of their business and assets into taking out bigass loans so they can use that loan money to make .0001% more money than the APR on the loan will cost. And they'll take out as many of these loans as they can to do this as much as they can because if you can take a loan out and invest it in something that returns more than the interest, you're basically getting free money (from your perspective).
Even McDonalds has something like 57 billion dollars of debt from doing this. McD. The fucking moneyprinter of fast food, is up to their eyes in debt, because taking it out to expand unsustainably had a very marginally better return than expanding with their own money.

>this fake "boom"