Ian Ayres: Why Young People Should Borrow to Invest

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Another out-of-touch elitist nut that wants the young serfs to fund his lavish life style. Why do we keep paying such people their salaries, while we are getting destroyed by corporate greed and dysfunctional government?

FedUpOfLeftistLiars of WA 12:36AM April 26, 2013

This guy Ayres is totally bonkers. Lock him up before he hurts someone.

Davej of MO 11:07AM July 09, 2010

I had an investment advisor tell me to do this 3 years ago
I thought he was crazy then; guess that's one disaster I managed to avoid!

David N Cook of CA 5:23PM June 07, 2010

This is a classic case of academia losing touch with reality. Mr Ayres has lost sight of the forest because there are too many trees in his way. Over-borrowing because of academia's false notions are what caused most of the mess we're in today.
Debt = risk. It doesn't matter what you are purchasing with the debt. Even borrowing to buy a house puts you at risk - just ask all the folks who lost their homes when their incomes dropped over the last few years.
Borrowing to purchase investment increases risk, regardless of age but especially for young people who already have too much risk in unestablished careers, income patterns, etc. Too many young people are declaring bankruptcy already from borrowing too much and you want them to borrow more? Insane!
Wait, the more I think of it, Professor Ayres must be running for Congress. He'd certainly fit in with the "borrow more money to fix the borrowing too much money" crisis. Knucklehead.
Instead of teaching young people how to go deeper into debt, how about we teach them how to live without borrowing anything? When you live debt free there's virtually no risk. I know that's not sexy or exciting but the funny thing is it works!!
Matt Wegner
www.financialexcellence.net

Financial Coach Matt Wegner of WI 5:20PM June 07, 2010

I got a tip on a horse for you to invest in. Go see the 'Loan Arranger'. He'll fix you up.......my first GF's father was a bookie and a shark. Same routine. Different names.

btengineer of NJ 3:42PM June 07, 2010

I can understand his point, but this is also an extremely risky approach. Even though borrowing on margin is a low cost way to leverage your investments, it is also quite risky.
I can envision a scenario where younger people are doing this, we have the "hundred year event" and the capital they have accumulated is lost due to margin calls. I don't disagree with the theory behind what he is proposing. It's just that practical outcomes are often quite different than theoretical outcomes.
Chris Manning, CFP
manningfinance.com
twitter.com/manningfinance

Chris Manning of TX 3:36PM June 07, 2010

I can understand his point, but this is also an extremely risky approach. Even though borrowing on margin is a low cost way to leverage your investments, it is also quite risky.
I can envision a scenario where younger people are doing this, we have the "hundred year event" and the capital they have accumulated is lost due to margin calls. I don't disagree with the theory behind what he is proposing. It's just that practical outcomes are often quite different than theoretical outcomes.
Chris Manning, CFP
manningfinance.com
twitter.com/manningfinance

Chris Manning of TX 3:35PM June 07, 2010