I used to think taking on more debt would be foolish, but in our current mess, the banks seem reluctant to call in loans or foreclose on mortgages because it means that they have to inject some market reality into their balance sheet.
Under this scenario, pilfering a weaker (politically and finacially weak) bank for credit might be worth the risk, especially if you can invest in something that will have value in a depressed economy, like the basic necessities of life.
If the banking system goes under, traditional investments will be worthless, so it doesn't make much sense to go this route with your credit. I personally don't expect physical gold to be of much value in this scenerio either, but if it wasn't confiscated it would likely have some value above zero.
It's worth a ponder, but I'm not sure I would have the guts to act.
Best...Jeff
If someone had lines of credit available, why would it not make sense to maximize these at current historic rates and either use that money to be in cash, buy PM's, or foreign currency if the dollar temporarily climbs.
I am worried that credit will soon dry up and make accessing this liquidity difficult or expensive.
What are the upsides and more importantly, what are the down sides.
Assume there to be enough continuing income to service the debt and that the money would be used only to invest, not go on some shopping spree. Or, if I were to go shopping, use that money for preps.