2022-12-14 04:23:42
According to the Intercept, inflation is good for you if you have debt because the number value stays the same but the actual value decreases. [Link] NEEDS_MORE_RATINGS(2-0-12) Author
2022-12-14 05:24:51
If debt is acquired at a low fixed rate, then inflation can be good for the debt holder. But if debt is acquired at a variable rate as rates are rising, the interest payments can increase and overwhelm the borrower. Elon appears to be referring to this latter type of debt. NEEDS_MORE_RATINGS(4-1-3) Author
2022-12-14 07:17:01
Debt can be risky in turbulent economic times for numerous reasons: 1) It can be called in during a liquidity crisis 2) Adjustable rate loans may see unforseen increases in interest as the Fed raises rates 3) Higher risk of unemployment means you may be unable to make payments NEEDS_MORE_RATINGS(5-3-1) Author
2022-12-15 01:11:42
Rising interest rates are always less favorable to new borrowers. Although inflation favors those debtors whose interest rates are fixed, those with adjustable rates have a problem. NEEDS_MORE_RATINGS(4-0-0) Author