Previous post Next post

BAD DEBT vs GOOD DEBT? – The Eurozone Will Not Be Saved By Debt

Mario Draghi urges Europe to use soaring debt for productive purposes.

Europe is running up vast amounts of new borrowing because of the huge government subsidies needed to keep businesses and households afloat during the worst of the pandemic.

But such debt was only sustainable if it is used for productive purposes, such as investment in youth, infrastructure for production, or research, Draghi said.

“In that case, it will be seen as ‘good’ debt,” he said.

“If, however, debt is used for unproductive purposes, it will be seen as ‘bad’ debt and its sustainability will be eroded.”

Please subscribe to my channel and leave your comments below:

☑ Twitter - https://twitter.com/dlacalle_IA
☑ Website - https://www.dlacalle.com/en
☑ My books in Amazon - https://www.amazon.com/Daniel-Lacalle/e/B00P2I78OG

Kind regards!
Full story here Are you the author?
Daniel Lacalle
Daniel Lacalle has a PhD in Economics and is author of Escape from the Central Bank Trap, Life in the Financial Markets, and The Energy World Is Flat.
Previous post See more for 6b.) Daniel Lacalle Next post
Tags:

Permanent link to this article: https://snbchf.com/video/lacalle-debt-good-debt-eurozone-debt/

4 comments

Skip to comment form

  1. José Luis Fernández Martínez

    Zoy Español, cazi ná.

  2. Finance & Economics

    Debt, begets more debt, not solutions.

  3. Pro Gamer

    Draghi como siempre demasiado optimista. Creyó que comprando deuda española e italiana iban a usar el margen dado para hacer reformas y ahora cree que los gobiernos pueden gastar sabiamente…

  4. Mikko S

    Great analysis like always!

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.