Originally Posted by
Timocracy
If the debt is for a appreciating asset that will provide an income higher then the cost of debt, it's a good debt. Think your homeloan, broadband network, infrastructure.
This is the biggest con-job played on the majority of Australians. There is virtually
no such thing as an appreciating asset. All assets will depreciate at some rate and if they don't appear to, then it's only because you're seeking a greater fool to pass it on to. This is the very characteristic of a ponzi scheme and Australia is full of them, especially in real estate.
The only thing worth borrowing money for is a productive asset and then only if it can produce more than the interest cost. A proper capitalist market economy would only allow this to happen for a very short time, so don't borrow too much!
Of course, if the government gives you some kind of market distortion, tax break or monopoly privilege, then undoubtedly you're onto a winner, personally, but the nation is the loser.
Sigh...