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To: Thomas M. who wrote (116129)	8/8/2001 4:28:05 PM
From: Ilaine	Read Replies (5) \| Respond to of 436258

>>this must soon reverse into debt going down, which is bad<< Logically, there are three possibilities - debt continues to go up, debt stays the same, or debt goes down. I gather, from what you posted, that debt continuing to go up is bad, and debt going down is also bad. The mechanism isn't explained. Are debt going up and debt going down bad for the same reason, or different reasons? Let me take a guess here. Your position is that debt going up is bad because the debtor may default. But that's not why debt going down is bad, debt going down is bad because the consumer may consume less. Am I right? But if debt goes down, then it is less likely that the debtor will default, which is good. Further, if the consumer consumes with cash rather than credit, there are no interest payments so the consumer actually has more disposable income with which to consume goods and services, which is also good.