With all the recent news of the economic downturn and the decline of the dollar, what would happen in case we%26#039;ll have another %26quot;Black Friday%26quot; like it was in the late 1920s? If the US economy crashes and maybe the dollar as well? What would happen to any personal loans, like student loans, or credit card debt? Would it disappear as well if the banks shut down and the dollar is worth nothing?
In case the economy crashes, what will happen to the Dollar and any personal debts?
The 1930%26#039;s was a period of deflation and the dollar had more purchasing power in 1940 than it did before the market crash. Many economist believe that this deflation was in part responsible foe the depression so the FED is acting now to make sure that deflation does not occur and banks do not shut down.
Debt is transferred to another institution in case of bank failure so the person who owes the debt will continue to owe it unless they declare bankruptcy. If there is inflation and the dollar loses purchasing power, debts are usually repaid because wages also increase and repaying becomes easier.
No comments:
Post a Comment