Is financial debt real or is it just a bunch of bull?

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let me explain... yesterday i approached my 6 year old nephew about 6 bucks he owed me--- from halloween!(i didn't really need it, i just wanted to be annoying,lol) he had been avoiding me, well, since halloween. finally, i sucked it up because i knew darn well he would never be able to pay me back, at least not anytime soon,lol. what's the point? i know the average adult has a little more debt than 6 bucks,lol, but isn't forgiveness, um, let's see, the basis of humanity. 30,000 dollars in debt huh? gone, poof. why can companies just forget about it? creditors probably are owed billions, but obviously if they are still around , they are doing just fine with out it ya know? my newphew had an obligation to pay me back, it was a loan! but i did not die of starvation because he didn't. please have a sense of humor with this question guys, obviously there is a big difference between 6 bucks and 60,000 dollars....

Is financial debt real or is it just a bunch of bull?

If what you mean is how do credit companies survive without the money they have loaned out, it is because it is an asset on their books they can borrow/invest against. IE they still have the money. That's one of the problesm with debt in America, people confuse cash in hand with wealth. If I borrow $10 bucks from Bob (and am contractually obligated to pay it back), I'm no richer walking around with the ten buck than before I borrowed it. And Bob is no poorer. And Bob can say sell that debt or otherwise use it for financial gain, even if he doesn't have the actual $10 bill in his hand.

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Is financial debt real or is it just a bunch of bull?

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