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To: Maurice Winn who wrote (45156)	1/24/2004 6:30:24 AM
From: elmatador	Read Replies (1) \| Respond to of 74559

How comes we have debt crisis once in a while?

To: Maurice Winn who wrote (45156)	1/24/2004 10:21:22 AM
From: smolejv@gmx.net	Read Replies (2) \| Respond to of 74559

Hi Mq, one can just as well juggle them numbers like this: The size of the labour force is not 200M, it's at app 167M (dec 2003),subtracting the unemployed gives 138M, make it then 65K per snout. The average employed J6P earns 520/week times 40 is about 21k, which means he owns three years of their income (it's not that much, yawn). And let's say he should be paying 5% and no principal on his 65K, so that's 3250, makes it 15% of his take-home pay. To keep the dogs at bay. Forget the principal. Not to mention social segregation effects - how interest rate (negatively) correlates with the take-home pay. But, let's just keep to the median. >>Debt is good. It's motivating<< This is a dumb statement - for some it stands on the head - they are first motivated, to get somewhere, from where they are, and so they (second) take on debt. And for some, debt is just - debt. It motivates them to leave end-of-the-month statements unopened. dj PS: Id like to know what kind of real estate one could get for 65K - I'm clean as a whistle, no consumer debt AAA record. Something in Upstate NY, anyone? Or 1 hr drive to Santa Monica? Much obliged PPS: The dynamics - how it used to be few years ago and how it is today - is also a concern. Will J6P now put his nose to the stone and pay back what he owes? Make up your minds guys! Either you want US (us) to keep spending. Or you shut up and forget the US consumer.