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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?

To: J_F_Shepard who wrote (45266)	11/16/2017 12:14:24 AM
From: Steve Lokness	Respond to of 364913

This is same type of thinking that brought us the housing meltdown. The thing is the government never pays down anything (even during Clinton days). The debt they pay down today is compounded because they borrow yet more money. If it was just a matter of flipping over the loan, that would be one thing, but that isn't what is happening at all. Think of it this way; you have a high percent mortgage and have a chance to reborrow and pay off the old loan, but you then go out on top of that mortgage and take a trip to Europe and add on to your house and build a new room with a swimming pool - because, well, because you can and interest rates are low. ...........And guess what? The entire original amount is there with interest due every single day and on top of that you have borrowed yet more and more money and the interest is due on that too. .........At some point you need more money to pay the interest on those bills and the bank either says sure - but the interest instead of being 4% will be 10% or they decline to loan to you at all - think China. Then you have to go to Norway as a last resort and they aren't dumb and charge you 12%.