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To: Ilaine who wrote (116140)	8/8/2001 4:33:04 PM
From: NOW	Read Replies (1) \| Respond to of 436258

Cobalt; i really appreciate your keeping us honest here, but your cynacism does so border on clownishness....

To: Ilaine who wrote (116140)	8/8/2001 4:35:51 PM
From: PMG	Read Replies (1) \| Respond to of 436258

Consumer debt is good, because indebted consumers have a high motivation to work to avoid default <g>

To: Ilaine who wrote (116140)	8/8/2001 4:46:48 PM
From: TheStockFairy	Respond to of 436258

<<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. >> In thinking about this...if the consumer is paying down their credit card bill, they will no longer be paying interest on that pizza they bought in 1999, but they will not have any additional money for new consumption unless they charge with their credit card. Sound about right?

To: Ilaine who wrote (116140)	8/8/2001 4:46:56 PM
From: Thomas M.	Read Replies (1) \| Respond to of 436258

Your position is that debt going up is bad Wrong. Debt going up is good for the economy. This is what turned a small economic boom into a big one. What is bad is the overall level of debt being so large (relative to the economy, on a macro level, or relative to incomes or corporate cash flow, on a micro level) as to exacerbate the magnitude of the downturn, whenever it comes. The downturn is the "bad" part. The excess debt will most likely turn a small downturn into a big one. Tom