To: mishedlo who wrote (3691 ) 4/6/2004 12:40:35 PM From: russwinter Read Replies (4) | Respond to <You ignore the possibility that this economic ship has already turned.> low interest rates , ) that allows them to borrow aggressively to continue on. Take away their refi boom, and they just go to credit cards. I think borrowing has had 7.5 times the impact on the economy that wages growth has. Americans have borrowed $1.5 tillion since 11/2001, they are only earned $200 billion more in wages. So low rates perpetuate this behavior and keeps the economy overheated. I'm not sure what your theory is on this, but it sounds like you think people (including China) just give up the ghost naturally or by tweaking policy (like China is attempting) a bit? So since our economy is 70% consumer based, what will precipitate our economic bust, just dead weight? No, I think it will be a forced catalyst.
