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.

Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Cary Salsberg who wrote (10462)	7/18/2002 10:42:41 AM
From: Robert Douglas	Read Replies (1) \| Respond to of 10921

When interest rate rise from historically low levels, will households be able to reduce debt or will the rising cost of debt service impede the economic recovery? Fixed debt like the majority of mortgages won't be impacted. Credit card debt is also quite "sticky" in its rates and they haven't come down much. Variable rate mortgages will go up and hurt spending, but don't forget that many households will benefit from higher rates on their CDs and money market funds. In times past, I have heard arguments that increased interest rates actually helps spending because of this. But don't forget this. When interest rates go up, it will be because the economy is recovering. That should make it easier for businesses and consumers to handle the higher rates.

To: Cary Salsberg who wrote (10462)	7/18/2002 1:26:01 PM
From: Jim Willie CB	Respond to of 10921

Pimco's Gross claims that up to 75% of S&P firms swapped debt he wrote in May about General Electric and their debts he believes that gradually rising shorterm rates will hurt many (if not most) big companies who have swapped their higher cost longterm debt for lower cost shorterm debt he believes that rising rates will be very harmful to S&P firms' profitability rising rates to households will increase their mortgage costs that is, for those who jumped into ARM's (adjustables) it will also make the silly high creditcard rates even higher but my eyes are on foreigners and their disposition toward USTBonds round #1 has seen limited foreign stock buying maybe some selling I wonder if round #2 will see foreign TBond selling we will see you seem like a patient guy with a long leash so here is this The Austrian School of Economics purports that an economic system with unbacked monetary printing can endure its own promisuity only 2-3 decades that fiat currencies invite unbridled printing and spending but they conclude a scary conclusion after 2-3 decades, an accelerating money supply must be necessary in order to maintain even low level linear income growth and eventually even that growth flattens out right now, Puplava points out that our debt levels nationally are in the $32,000 billion range that debt is still accelerating but now income levels are flattening out or only feebly increasing Austrian School conclusion is that the debt burden becomes increasingly unsustainable this is part of the reason that Fed Monetary stimulus is failing now we face debt collapse and scandal unfortunately, the scandals and terrorist threat is diverting attention from the debt collapse story unfolding good luck to you, unless you have me on IGNORE also / jim