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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: mistermj who wrote (211889)	1/6/2007 6:42:16 AM
From: kumar	Read Replies (1) \| Respond to of 281500

I understand "proper debt". I once had bought a house with 40% equity. and 60% financed. On the flip side, my mother lives in a house that is 100% paid off many years ago - I try to explain to her to capitalize her equity, she wont listen... It appears to me our govt works on 100% finance. risky game.

To: mistermj who wrote (211889)	1/6/2007 9:51:27 AM
From: michael97123	Read Replies (1) \| Respond to of 281500

Reagan used debt to squeeze excess spending out of govt. Bush used debt to finance a war while like LBJ giving us both guns and butter. We will probably pay a price for this in a post war period if post war ever comes. In any case we have to start to wean ourselves off debt soon and not adopt the "radical" paygo measures the dems are proposing. In a dem congress, Paygo will end up controlling some spending but more importantly will raise taxes (end brackets and dividend/cap gains) thus causing recession. Guys like rubin and now paulson understand this well methinks. Pelosi and Rangel (who i love as a person) are clueless i am afraid. So you and Kumar are both right.

To: mistermj who wrote (211889)	1/6/2007 2:44:57 PM
From: SARMAN	Respond to of 281500

You are absolutely correct, "Debt is a tool" If you abuse it, it will bite you in the ass. Like many homeowners did, they leverage all their home equity when the market was going up. Today these homeowners can not service their debts and their homes are up for sale. As for the government, one day Chine will foreclose on the US cause the US will be bankrupt. Most manufacturing job are going or gone overseas, hell, even technical jobs are gone overseas. War spending, welfare spending, etc. spiraling out of control. I will not be surprised that one day China will be running the White House. Edited: Bottom line, the US is spending more than it is earning and that spells DISASTER.