I’m replacing the words “Merkel and the EU” & “Greece” with the words “US Government ” & “Students” in this article. What do you think?
“From the beginning, the US government and the loan companies have operated from the position that because students took on debt, the students now need to pay it back. That position assumed — bizarrely, in hindsight — that debt works only one way: If you lend someone money, that money is repaid.
But that is NOT how free markets work.
Debt is not a guarantee of future payments in full. Rather, it is a risk that creditors take, in hopes of maybe being paid tomorrow.
The key word there is “risk.”
If you’re willing to take the risk, you’ll get a premium — in the form of interest.
But the downside of that risk is that you lose your money. And the students should call the government’s bluff.
Read more: http://uk.businessinsider.com/greece-referendum-result-and-the-meaning-of-debt-2015-7?r=US#ixzz3fCObgXVy