[monlockandkey]

If debt was not so widespread, then the cost of assets would be correlated to salary.

Now with immediate injection of cash, assets are at prices which require money that an ordinary person will never have. They have to jump on the debt treadmill to acquire necessities.

[ejb999]

excellent point - buying a new car is a good example, allowing someone to take out a 7 year loan to payoff a new car, allows the car companies to simply charge more for them - as a large portion of people make their decisions based on being able to afford the monthly payment, not the total price.

[nebula8804]

That does not seem like a good example. The car industry is extremely competitive and capital intensive. Margins are so thin on the lower prices sedans that some companies (GM, Ford) have just given up on the segment.

[CodesInChaos]

I think easily available loads are largely responsible for the high cost of college education in the US.