Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: GraceZ who wrote (17074)	3/20/2002 11:05:07 AM
From: elmatador	Read Replies (2) \| Respond to of 74559

People borrow because its money is cheap. And they will continue to do so as long as credit is widely available. Countries with external debts, don't pay it. They just rolltover.

To: GraceZ who wrote (17074)	3/20/2002 12:06:22 PM
From: smolejv@gmx.net	Read Replies (2) \| Respond to of 74559

>>I think if you were to examine net worth statements over the last ten years you would find that net worth has increased significantly for the average American family over the past ten years at the same time debt levels have grown<< Anybody ready to take up the challenge? I think a lot (quite a huge big lot) hinges on the financial soundness of the microeconomical unit called J6P. Looks to me, the value of both assets and liabilities increased lately (ie 3-5 years) much more than the cash flow available. Small print: statistically speaking J6P probably does not exist, but I can afford myself one for the sake of the argument. dj

To: GraceZ who wrote (17074)	3/20/2002 2:29:19 PM
From: LLCF	Read Replies (1) \| Respond to of 74559

<Basically people have high debt levels because they won't give up the asset side of their balance sheet to pay down the liability side as long as they are able to service the debt. If you are implying that most families have liabilities that exceed their assets I would have to say that the data does not support that kind of conclusion. Families with the highest levels of debt tend to have very high asset values to offset that debt. > Too bad the value of the debt doesn't fluctuate with the value of the assets. DAK