> Dana wrote: > actually I have seen a number of newspaper articles in the last > several days expressing concern over the amount of consumer and > mortgage debt out there.
Well for us conservative folks, you hit it square. The theory is this: the economy over the last few years has been propped up by mortgage debt and cheap Asian goods. Those days may be over however: 1.) Upper bracket housing prices have stagnated this summer which could spell the end of the housing ATM machine for consumers. 2.) China is floating its currency. 3.) Interest rates are bound to rise. (historically, but not yet. Weird.) 4.) All of the "good money" has been lent - it's the sub-prime and riskier money that's left. The conservative read is that consumer spending will start to trickle down and there won't be much to take it's place. Those mortgaged-out consumers will all of sudden realize they can't re-fi anymore and will start feeling poor. At the same time prices will begin to rise and, with low demand, businesses will feel the need to hang on to cash. Just as that's really picking up steam the Medicare, Medicaid, and SS debts will require a tax increase or a service decrease, squeezing consumer ever more. And then there's the threat of a sudden dollar devaluation due to the twin deficits. Or. Maybe Mr. Bush is right and deficit pork spending is the key to wealth ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Discover CFTicket - The leading ColdFusion Help Desk and Trouble Ticket application http://www.houseoffusion.com/banners/view.cfm?bannerid=48 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:171452 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
