On Tuesday, August 9, 2011 at 12:04:39 (-0400) Doug Henwood writes: > >On Aug 9, 2011, at 9:55 AM, Bill Lear wrote: > >> Example: >> >> If the US Government was [sic] a family, they would be making >> $58,000 a year, they spend $75,000 a year, and are $327,000 in >> credit card debt. >> >> --- Dave Ramsey, who advocates we handle money "God and grandma's way" >> >> What's wrong with the picture above? > >For one, the U.S. Treasury pays almost 0% on bills and about 2.5% on 10-year >notes. Credit card interest is, what, 15%? > >Actually household debt is about 120% of after-tax personal income - credit >cards and the like around 20% and mortgages around 90% (with some other >miscellaneous stuff thrown in). But just looking at that ignores the asset >side, which is almost 620% of income, including 140% for residential real >estate.
I'm not sure I understand the last sentence --- this is in reference to household assets? I thought residential real estate would be a much larger portion of assets. What accounts for the rest? BTW, is this median or average? >I have no idea where that $327,000 figure could come from. Federal debt is >about 70% of GDP. Applying that to family income would mean about $40,000 in >debt. And at an interest rate that's a fraction of credit card interest. > >Who's Dave Ramsey? Thanks for the input, Doug. Ramsey is a self-help guru who offers products to "jumpstart your journey of handling money God and grandma’s way". See daveramsey.com for details, if you dare... This is the level of economic sophistication of 90% of the Tea Party. Bill _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
