[Homestead] NYTimes.com Article: The Next Shock: Not Oil, but Debt

Gene GeRue genegerue at ruralize.com
Mon Sep 6 17:43:44 EDT 2004


>The same holds for consumers. All kinds of wild cards that
>are scary even in placid times - another spike in gas
>prices, a rupture of the housing bubble, fresh job losses,
>a period of sustained inflation - become nightmares during
>times of greater leverage. So as we go to bed with our
>suppers and our home-equity lines of credit, Professor
>Goolsbee says: "I think we should be a little nervous."

Where's a Bill Clinton when we need him? The surplus he provided has been 
spent and we now have big debt that is getting bigger and are offered 
hopeful promises that lower taxes will solve the problem. I will not depend 
on that. As USA debt grows and we must increase borrowing from other 
countries they will demand higher interest. That will drive consumer 
interest rates higher. If you don't have a good interest rate on your 
mortgage, consider doing it now. These are the good old days.





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