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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (31610)	5/19/2005 9:44:51 PM
From: GraceZ	Read Replies (1) \| Respond to of 306849

Debt is always self limiting for individuals, when they feel good they take on more and when they feel pessimistic they pay it down. If they reach the point where they can't service it, they lose their ability to borrow. There are precious few exceptions. I would think you are on the pessimistic side, ask yourself how much debt have you been willing to take on in the last five years? I'm one of the most optimistic people I know right now and I'm totally unwilling to take on new debt, whereas in the later half of the 1990s, with much higher rates, I had no second thoughts about borrowing for business expansion because I knew I could make it back. It's countries and corporations that you have to worry about when it comes to debt.