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

To: Lizzie Tudor who wrote (106266)	2/22/2008 3:58:40 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 306849

Lizzie, I see that you failed to address any of the points I made, except to try and wiggle your way around them.. True or False.. Excess FICA receipts actually increase the national debt? True or False? A 10 year T-Bill bond yield that is trading before the Federal Funds rate would be yield even less were the budget deficit to be erased. True or False? A non-existent Gov't Debt would nullify the Federal Reserves ability to inject, or withdraw liquidity from the money supply? True or False? As the 10 year yield declines, investors are attracted to other higher yielding monetary instruments, including 30 year government guaranteed mortgages. True or False? As this investor money becomes available to mortgage bankers, it increases the motivation for these mortgage brokers to issue risky loans in the face of ready supplies of interested capital. We can debate all day, and reasonably, whether the $4 Trillion you say has been spent by this administration has been used wisely. Should it have been spent in Iraq or Afghanistan, or deployed solely on a domestic basis?? That's a fair question. However, don't even try to assert that there EVER was a government surplus. Because the only place the Social Security Trust Fund is permitted to invest excess FICA revenues is in Government Bonds. And that means the government has to issue those bonds and then takes that tax revenue and applies it to the general budget. Hawk