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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (43002)	5/1/2010 3:02:44 AM
From: RMF	Read Replies (2) \| Respond to of 71588

Tim, GDP is a fluid thing, as most of the world can attest to after the last couple years of turmoil. But TOTAL debt is NOT fluid and remains just the same regardless of how your economy is doing. A LOT of people were making 6 figures a few years ago that are now making NOTHING. According to your definition of debt those people would have been perfectly "responsible" in assuming as much debt as they could afford at the TIME. But I disagree with that definition of debt. Just because you can AFFORD it today doesn't mean you will be able to afford it at some time in the future. We may be able to service our debt currently, but what happens if the markets start demanding a much higher YIELD on our paper? The higher yield will increase our interest rates and also decrease our economic growth. We're in a different world now than we were in even 20 years ago....