Man I sure love how the Morte crisis revealed all the problems with the trading of debt on the stock market and how banks learned their lesson from it, right...
Serious question: I lent my friend 500 Euro. Took him 9 months to pay it back. The duration wasn't the problem but the need from my end to remind him time and time again. Not often, just every other month. And also, never the full amount, I'd text something like "Hey, if you're financial alright, do you mind returning 100 Euro for now?"
Question: What are your thoughts on this scenario?
False. The debt stays the same. You just owe to someone money. If there is a secondary market on the loans/assets/collaterals doesn't affect your debt per se. However, it might affect an economy as a whole when/if the ponzi scheme collapses.
Yes, that's how the bond market works. It's like the stock market, except instead of betting on a company's profitability, you're betting on the credit worthiness of the debtors.
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