Saturday, March 16, 2013

The consequences of unsustainable debt

History and human experience tell us the consequence of unsustainable debt: the creditor "owns" the debtor and, being in a superior negotiating position, gets to name his terms.

Such is the case in the Cincinnati Parking Plot, where New York investment bankers dictate horribly one-sided terms to a Council strapped by debt and unsustainable spending.

As this article about the Cypriot debt crisis addresses, the consequences are painful.

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