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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: The Wharf who wrote (22582)	3/10/2005 1:15:04 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81050

Darleen > Here in CA property is very costly house in this area one week on market selling price for an original 950K. Most assuredly it will be remodelled into the 1.5 area. Looks like the bubble is blowing up fast but this piece says not. moneycentral.msn.com >>Low bubble potential: housing and consumer debt. Yes, consumer and mortgage debt are at historically high levels, and the payments are affordable to many consumers and homeowners only as long as interest rates stay low. But these markets just don’t combine high-slipperiness/high-leverage characteristics in a way that would produce a high-velocity cascade of the kind we call a bubble. If folks can’t meet their credit card bills or mortgage obligations, the default that triggers the sale of assets takes place one household at a time over weeks, if not months. Leverage in these financial products is high if you think of the amount of money consumers have borrowed against their underlying equity, but the leverage is relatively small if measured against what a creditor would be able to recover in the case of default. Asset prices could certainly decline in the housing market from current levels, and a consumer debt crunch would slow the economy measurably, but these are events that unfold much more slowly than the quick bubble burst of 2000.<<

To: The Wharf who wrote (22582)	3/11/2005 5:33:09 AM
From: GUSTAVE JAEGER	Read Replies (1) \| Respond to of 81050

Re: These retain the key limits on national budget deficits to 3 percent of gross domestic product and a debt of no more than 60 percent of GDP, but say if nations exceed that level the EU would consider mitigating conditions before violators would face warnings and sanctions. Extenuating circumstances the Commission should consider include a country's investment spending, structural reforms, research spending as well as "exceptional circumstances," such as natural disasters that trigger unforeseen public spending, according to the plan. LOL! If you can't smooth out and hide the cracks in the "Euro Dam" () then... blame the dam's designer! Pretend that you didn't need such a big dam, after all! () Message 21059156