Re: (Quick) Question, Pls Rspnd if you\'re watching the forum....
Recommend any books on that?
I don't think there is anything wrong with using leverage to finance companies. In fact, that's the whole point. I think there is more to it than just the loans, as far as 1929 goes. Why didn't interest rates skyrocket if the demand for loans went up? Qd should't change unless the money supply is growing -- inelastic supply makes for an interest rate that reflects demand pure and simple.
A lot of people going broke because they took out huge loans and never could repay them due to their dumb stock choices -- now that I can understand.
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