and the credit card company has your credit so they are not in debtIf u use your credit card or line of credit. U r in debt
Life nowadays is less about saving and more about debt management
in The Big Short players made money creating credit default swapsYoga you should see the movie "The Big Short".
The printing press is the BIGGEST creditor!
The US gov't owes the Fed over $2 trillion. It also owes the taxpayer (Social Security/Other Pensions) another $4 Trillion. It owes China $1.3T and Japan $1.1T. The remainder is held by banks and credit unions, insurance companies, mutual funds and private pensions.The printing press is the BIGGEST creditor!
That WAS what textbooks taught us. But while the world's major central banks werethat is inflation, not debt, which I worse
You are Right! USA is highly indebted.The US gov't owes the Fed over $2 trillion. It also owes the taxpayer (Social Security/Other Pensions) another $4 Trillion. It owes China $1.3T and Japan $1.1T. The remainder is held by banks and credit unions, insurance companies, mutual funds and private pensions.
Buy hey, on the positive side, at least they don't owe the Iron Bank of Braavos.The US gov't owes the Fed over $2 trillion. It also owes the taxpayer (Social Security/Other Pensions) another $4 Trillion. It owes China $1.3T and Japan $1.1T. The remainder is held by banks and credit unions, insurance companies, mutual funds and private pensions.
Debt and credit are not 1:1 and a zero sum balance.it seems like most countries, and their citizens, are in debt
how can everybody be in debt
for every debt is there not a corresponding credit so overall credit equals debt
I believe the banks paid off the insurance money, that's why the banks went bankrupt after the housing collapse in 2008.in The Big Short players made money creating credit default swaps
as a CDS is insurance for a bundled mortgage purchase, how did they profit as this insurance had to be paid off when the bundles went bad?
I THOUGHT IT WAS AIG, an insurance company, that held all the CDS and they had to be bailed out to prevent financial collapse because they did not have enough money to cover their positionI believe the banks paid off the insurance money, that's why the banks went bankrupt after the housing collapse in 2008.
This is correct. But it goes further. The answer to the question is "usury". Look it up.In fractional reserve banking, debt = money. If all debts were paid off there would be no currency in circulation.