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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: prometheus1976 who wrote (108791)6/19/2010 1:41:20 PM
From: Hawkmoon  Read Replies (1) | Respond to of 110194
 
And remember the adage "All debt must ultimately be repaid(extinguished),either by the borrower,or by the LENDER"

And when the balance shifts to the lender extinguishing debt, that's the tipping point.

So long as the majority of borrowers repay their debt, the system can handle a few defaults.

But as I stated in another post, without demand based upon a gainfully employed and productive workforce creating value added goods/services, default levels will increase.

Hawk