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To: E.J. Neitz Jr who wrote (50343)	1/6/2004 9:02:14 AM
From: Ron McKinnon	Respond to of 53068

Consumer Debt/Savings Rates 1/06/04 08:55 AM ET I know this isn't a new issue or an englightenment, but it does deserve its due attention. Consumer debt hit a record $1.98 trillion in October 2003, from Fed Reserve numbers. The debt has credit cards and car loans, but not mortgages, but adds up to $18,700 per household. Worse, savings levels are at less than 2% of after-tax income. Bankruptcy filings totaled 1.25 million during the first nine months of 2003, after having reached 1 million in 1996. These points go along the lines of what I was talking about on January 2nd, about 2004 being a pivotal year. If the economy can't show reasonable growth figures this year to support the 'recovering economy' ideals, then eventually consumer debt (consumers never waivered during the last 3 years), will be hard to ignore. Worse, I feel these lower interest rates might be enticing consumers to feel that they can borrow more because rates are low, when in reality, they shouldn't borrow anything more at all. The addage of "you'll always make more next year to cover", can get consumers into trouble. I'm not painting the doom/gloom scenario, but the excesses of the 90s have yet to really stifle the consumer spending and this is one area the economy needs to not go away.