Edward Hadas

The stupidity of student debt

By Edward Hadas
July 2, 2014

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

When credit is too much of a good thing

By Edward Hadas
April 9, 2014

What does credit do after it has finished the job it was designed for? The supply of credit ought to stop at funding productive activity. But the reality is different. Surplus credit fuels dangerous asset price inflation and funds profligate governments. As leverage increases, so too does the risk of crisis and recession.

Mega sovereign writeoff could work

By Edward Hadas
February 12, 2014

A massive sovereign debt reduction is the right way to reduce the ridiculously high indebtedness of governments. The idea might sound crazy, but it makes economic sense, and could be done, albeit after some serious preparatory work.

A Christmas message for lenders

By Edward Hadas
December 18, 2013

For many shoppers, Christmas is a time to rack up debts in the expression of seasonal goodwill. For policymakers, it should be the holiday of debt forgiveness.

Imagine a world without debt

By Edward Hadas
August 7, 2013

I have a dream: a world without debt, and with much more equity. It’s not just that summer holidays are a good time for fantasising. The fifth anniversary of Lehman Brothers’ bankruptcy is a month away, and regulators have recently forced both Deutsche Bank and Barclays to issue more shares.

What to do about debt

By Edward Hadas
May 30, 2012

Debt, a little like sex, is a two-sided relationship which, when used appropriately, pleases the partners and is good for society. But both are also intoxicating and can easily become excessive and anti-social.

Bad ideas spawn Lesser Depression

By Edward Hadas
May 16, 2012

On September 15, 2008 Lehman Brothers collapsed in a heap, a bankruptcy that was followed by a recession in most rich countries. As time goes on, the severity of the disruption becomes both more apparent and more puzzling.

What is the morality of debt?

By Edward Hadas
October 26, 2011

Debt is a moral matter. While most economic activity is concerned with the “is” of how things are (investment, consumption and so forth), debts are always entwined with an “ought” – to repay. In discussing controversial debts–for example government borrowing in the euro zone and the U.S.–the moral question should be addressed directly: should these debts be paid off in full, or is some forgiveness justified?