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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Enam Luf who wrote (614940)	8/31/2004 2:03:55 PM
From: DuckTapeSunroof	Respond to of 769670

"The effect you mention is, of course, exacerbated by rising interest rates. And then of course there are the lurking secondary disasters of outsized consumer debt, the pending real estate bust, and derivatives markets snafus." Yes, exactly correct. The 'negative externalities' that are visited upon us come from: 1) The higher and higher costs of making payments every year on the ever-growing federal debt. 2) The growing need to float more and more federal debt in the public markets --- where it competes with debt issued by public and private companies which need financing to grow, and where it forces interest rates UP, eventually 'squeezing' private enterprise out of the debt markets... and raising the cost of borrowing to everyone in the economy....