Category: Economic Growth


Finance: Consumers taking on negative equity to buy new cars

Far too many people think that Wealth=Assets+Debt, as they take on loans to buy nice homes, cars, RVs and other toys. They look wealthy to the outside world, but in fact, are very poor because Wealth=Assets-Debt. Today, car dealers are encouraging consumers to roll over negative equity in car loans to buy newer, bigger, shinier and more expensive cars. The lead anecdote in the linked news item illustrates as a buyer now owes $45,000 on his $27,000 car purchase. This is bad, really bad, but 1/3d of used car trade ins are now going this route.


What if Blockchain is not that useful?

There are downsides to blockchain technologies and processes (blockchain algorithms power Bitcoin and other cryptocurrencies): Each purported use case  —  from payments to legal documents, from escrow to voting systems — amounts to a set of contortions to add a distributed, encrypted, anonymous ledger where...

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