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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (316575)	12/20/2006 7:24:09 AM
From: Elroy	Read Replies (1) \| Respond to of 1574267

Ever dollar of debt you add to the balance sheet is material. Ever dollar of debt added without a corresponding dollar of assets reduces your net worth and makes you less credit worthy, which drives up the rates at which people are willing to lend you money. You're not making sense. When the US issues $1 of debt it receives $1 in cash in return from the lender. No one issues debt without receiving the market equivalent level of assets. Your argument above says the US shouldn't give away US treasury notes for free. Well, we don't. The debt is good crowd are going to drive this country right into the ground. There is nothing inherently wrong with debt, as long as the economy is expanding and the government can service its debt. It's the same as you having a mortgage loan because you think you can use your savings to get better than the 5% interest you pay on the loan. If that is in fact true (for example, you can get 6% on your savings), then you shoud take out a larger and larger loan every year, and pocket the 1% spread between your interest payment and your investment income. Your debt would increase every year, and you would also become more wealthy every year. In that case, the debt would definitely be good.