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Wall Street Lie #2: Some Debt Is Good

One of Wall Street's biggest (and most dangerous) lies is that debt is an appropriate tool for building wealth.

Here's the bottom line…

If you owe someone money, you've still got to pay it off eventually. That means any growth you attribute to debt until it's paid off in full exists only in fantasyland. How do you think General Motors and Lehman Brothers got into so much trouble?

It's no different for personal portfolios. Maybe if our leaders had understood this in the first place, millions of investors would not have been taken on a white-knuckle ride.

Even those who act responsibly are finding out that we're now liable for the "other" guys' debts, too.