--- In FairfieldLife@yahoogroups.com, TurquoiseB <[EMAIL PROTECTED]> wrote: > --- In FairfieldLife@yahoogroups.com, akasha_108 <[EMAIL PROTECTED]> > wrote: > > --- In FairfieldLife@yahoogroups.com, TurquoiseB wrote: > > > Wake up. The United States of America has to borrow > > two billion dollars a day to stay afloat. I'd say > > that the world was supporting them. > > > <snip to> > > What are the conditions when that level of gov't borrowing is a bad > > thing? Thats the relevant case to make. Which you have not begun. > > And won't. I'm not the right person to be talking to > about debts; I have none. I live on pretty much a > cash basis, and like it that way. > > I know that people can come up with remarkable justi- > fications for building up personal or governmental > level of debts such as you describe, but it seems to > me that all these theories are based on predictablility. > The world's gonna be tomorrow pretty much what it is > today. This guy's earning power isn't going to change. > This country's earning power isn't going to change. > No huge economic hits are going to spring up and bite > us in the butt and hinder our ability to pay off the > debts as originally planned.
Its looked at probabilistically, not in an absolute deterministic way that you suggest. Its assumed that a certain % of loans will fail. The patterns of repayment usually fall along some known distribution. Still surprises do happen. That in itself doesn't require throwing the baby out with the bath water. It doesn't require to never go outside because of the risk a mosquito may randomly bit you. Risk can be managed. > Excuse me, but aren't we discussing one of those > unpleasant economic surprises biting a country in the > butt right now? This disaster may wind up costing > the country more -- in money that it doesn't really > have -- than the war in Iraq, which they also paid > for with money that they don't have, and the huge > arms buildup and the tax cuts ordered by the Bushies, > again to be paid for with money they don't really have. Not borrowing doesn't protect one from economic surprises or natural disasters. > You see sound economic policy. No. I didnt say that. I have many issues with current economic policies and practices. I have simply made that point that debt, in itself, is not necesarily a bad thing. > I see a nation, and > many of its people, acting like a crazed housewife > whose Valium prescription has run out. So to sedate > herself she goes out and charges up $100K on the > family credit cards. Such behavior always seems > like a good idea at the time. I am not arguing that there are not large problems and excesses in the current system. I think the housing bubble is a huge disater waiting to happen due to unsound lending policies. I think short-sighted energies polcies for decades will son come to haunt us. I think the tax system is insane. I think government spending has become, to a large extent, a pigs trough of vested interests. I simply made the case that debt is not per se a bad thing, it can be useful in some circumstances, and overused , abused in others. You mistakenly appear to generalize that I am making a case that all debt is good. Actually my point is we are facing some huge economic abuses and imbalances. If you are going to make a case for such, I am simply prompting you to tighten your arguements. Your current ones don't hold water, though the issue is real, and a real case can be made regarding the large economic dangers that we face. But enough unsolicted advice. :) ------------------------ Yahoo! Groups Sponsor --------------------~--> Get fast access to your favorite Yahoo! Groups. Make Yahoo! your home page http://us.click.yahoo.com/dpRU5A/wUILAA/yQLSAA/JjtolB/TM --------------------------------------------------------------------~-> To subscribe, send a message to: [EMAIL PROTECTED] Or go to: http://groups.yahoo.com/group/FairfieldLife/ and click 'Join This Group!' Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/FairfieldLife/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
