If you owe your bank a hundred pounds, you have a problem. But if you owe a million, it has.
About this quote
- What does it mean?
- Large debts give the debtor leverage over the creditor.
- In plain terms
- Owing a lot of money can shift power to the borrower.
- What can you take from it?
- Scale of debt affects who holds the leverage.
Where it applies
Putting it to work
Questions to consider
- Who holds the power in a debt relationship?
- How does debt scale change dynamics?
Another view
This dynamic can encourage risky behavior.
More from John Maynard Keynes
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