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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (45803)	1/4/2002 12:24:06 PM
From: Sully-	Respond to of 65232

HOUSEHOLD DEBT BALLOONS, PUFFED BY CRASH. In the "first two quarters of the current recession", the average U.S. household increased its debts by $1,420, the {Wall Street Journal} reports. By contrast, in the first two quarters of the early 1990s' recession, the average household {decreased} its debts by $410. Workers whose income has collapsed are now borrowing to pay bills, instead of accepting a lower living standerd as they should, the Journal comments, while auto makers and "[c]ompanies of all stripes are feeding the current debt frenzy," offering interest free loans in desperation to clear inventories. 5 billion credit card solicitations were mailed in 2001, a 43% increase over 2000. Ford Motor Company's large 4th quarter loss is partly due to "a sudden rise in soured auto loans." But the credit spigots are generally open wider than ever. [source: Jason Sapsford & Patrick Barta, Wall Street Journal, Jan. 2, 2002]