Shakespeare’s view on Cheap Credit
The Celtic Tiger saw a splurge in easy money. If you wanted a loan, you got it! For a car, boat, house, or TV, it was a free for all. Now the banks are out of cash and everything we bought is worth nothing!
The principal of credit is an admirable one. It allows people to get what they want and pay for it later.
However it does not come without a price. Interest is usually applied on a loan but there can be greater consequences.
For some weird reason Shakespeare knows our world better than we do! He saw these consequences quite clearly and many of his great plays detail them.
In 3rd year we studied The Merchant of Venice. This entire play revolves around a loan. The Jew, Shylock, seeks his revenge over Antonio by causing him to default on his loan. Today in Ireland you get sent to jail for this (in the most extreme of cases), but in those days you were removed of a pound of flesh!
Shylock is like a relentless bank that will stop at nothing to get its money back. At least in those days you knew the forfeit of the loan. During the Celtic Tiger the bank told you nothing and the government said that prosperity would last forever!
Even in Hamlet, which I now study in 5th year, the writing is on the wall that loans are to be avoided at all costs.
Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
It ruins marriage, you lose friends, and most importantly you can lose everything you own!!!
This crisis has been the wake up call us Irish need. China, who’s population save a large % of their income, is much better placed to deal with recessions like these. Thankfully some of us are taking the message seriously.
40% of adults are now debt free
This good news story shows that Irish people are beginning to save, but for how long?
If we see a boom again will personal spending rocket and will the loan cycle begin again?
It needs to be stopped and people need to realise that living within their means is the best way to live.