Credit is the most important part of the economy—and probably the least understood. It's the biggest and most volatile part.
When borrowers receive credit, they increase their spending. Because one person’s spending is another person’s income, increased spending drives the economy forward and creates a self-reinforcing pattern of economic growth.
Understanding how credit works is key to understanding economic cycles.
#RayDalio #Economy #Credit #Finance
When borrowers receive credit, they increase their spending. Because one person’s spending is another person’s income, increased spending drives the economy forward and creates a self-reinforcing pattern of economic growth.
Understanding how credit works is key to understanding economic cycles.
#RayDalio #Economy #Credit #Finance