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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: Mike M2 who wrote (13756)1/21/2002 12:36:56 PM
From: AC Flyer  Read Replies (2) | Respond to of 74559
 
Mike:

You wrote: >>We must also remember that debt levels are a record levels and credit quality is deteriorating<<

I would be more inclined to consider seriously your point of view if you would provide data to support your opinions.

My opinion regarding your opinion is that aggregate debt will ALWAYS be at a record level because of economic growth and of course credit quality is deteriorating - that's what happens in recessions.



To: Mike M2 who wrote (13756)1/21/2002 5:05:57 PM
From: Maurice Winn  Read Replies (3) | Respond to of 74559
 
Mqike, if a lender wants to lend me their money at 0.5% interest, I will borrow a BIG heap of it for a period of ten years.

I think there are many, many borrowers willing to borrow, but not at the high rates which lenders had been wanting. As interest rates drop, it's not surprising that debt levels are increasing. With the financial asset devaluations, it's not surprising that credit quality has deteriorated.

Mqurice