Final-Fan said:
Well, no, loans at 0% would still get you back the same dollar amount, which would still be worth 5% more. On the other hand, you'd gain nothing by it and risk them defaulting, so I have no idea what I was thinking with that post. I think I was tired. |
Yeah, that was a weird exampel you gave me.
What I meant was, if there's deflation, then there's no point in loaning. Considering that any investment is a risk, and that you can't spend the money while you loan it, why would you loan if you won't get anything back.
You're in a liquidity trap.
http://en.wikipedia.org/wiki/Liquidity_trap
Damn, you're talking about tired and sleep? I'm fucking hanging on a thread right now =/ Can't fucking sleep, can't fucking enjoy myself >.<
Gonna have the day off tomorrow... or I guess today...
