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To: Oblomov who wrote (116297)8/9/2001 12:25:23 PM
From: patron_anejo_por_favor  Read Replies (1) | Respond to of 436258
 
Yeah. Good to remember also that income fluctuates, but debt service requirements remain constant (provided you're not actively INCREASING your indebtedness). Therefore in a recession, the more highly leveraged you are, the more likely you are to take it in the neck. Thus, figures like debt/net worth don't mean much...if both levels are high relative to income, its much worse than if both levels are LOW relative to income.