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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (3693)	12/20/2003 10:54:42 PM
From: eddieww	Read Replies (2) \| Respond to of 110194

"US consumers simply are at or extremely near the point of debt limits." On what is that claim based? While it may be true that debt service as a % of disposable income is at or near record territory, that doesn't mean it can't go much higher. When I bought my first house I had to come up with 25% down, and my mortgage debt service couldn't be more than 25% of income. Now, such terms are absurd. 3% down and 40-50% of income here in SoCal. According to my wife, who gets out more than me -g-, people will continue to borrow until no one will lend to them. How will such a thing happen if the CB keeps cranking out the money?