Fighting Debt with Debt
by Bob McTeer
March 05, 2012
My house is under water, for sure
My car is upside down, you bet
But I’m getting me a consolidation loan
And finally getting out of debt
Well, it may be hard to borrow your way out of debt, but sometimes it buys time, and time is money. One of the few major contributions to the European debt crisis is the ECB’s lending to European banks. Long-term low-interest loans help the banks themselves as well as put them in a position to buy European sovereign debt, an excess of which is the main problem. It buys debtor countries some time to become less so. It goes a long way toward making the European debt crisis a condition that doesn’t portend disaster tomorrow.