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Biotech / Medical : 2012 Biotech Charity Contest -- Ignore unavailable to you. Want to Upgrade?

To: Chris08 who wrote (276)	6/26/2012 10:50:09 AM
From: Steve Lokness	4 Recommendations Read Replies (2) \| Respond to of 513

<<<<Most people seem unaware that money is virtually free for the US when the interest rate on a ten year treasury is about 1.5% as it is now>>>> Your thinking here reminds me of what got people in trouble with their mortgages; What you say about borrowing money at below interest rates (if used wisely which it never is), is true. Just like taking out a new mortgage for a slightly higher amount but at a lower monthly payment made sense to a lot of people. ........If that was the end of the story all would be great in the world. It was - is - not. We know how the housing mess ended. ........Here is the problem with your thinking, with Krugmans thinking; We borrow more and more and more which we can easily pay the debt payments on. We are borrowing something like 40% of each and every dollar the government spends. That includes the interest we pay on the debt. With interest near zero this is not a problem but anyone who thinks that interest rates will stay at near zero just has no sense of history. When interest rates go up - likely when lenders to the US start to worry about our debt load - all of a sudden our debt spirals out of control. Think Greece, Spain. What happened there? One simple thing. Their interest rate started to go up!