To: GeronL
You have to keep an eye on rising interest rates when attempting to sell our debt.
If buyers demand higher rates, that will translate to higher interest rates for housing and borrowing. The housing market is still on shaky ground, and could not take a rise in interest rates. It would lead to another strong downturn.
The psychological impact of another housing fall would reverberate across the economy, slowing things down even more, thereby reducing federal tax receipts adding to more debt which leads to having to sell more debt + even higher interest rates. The circle continues.
To: WILLIALAL
Server slowdown is a Rosie O’Donnell ain’t it?
66 posted on
02/26/2010 1:42:30 PM PST by
GeronL
(Political Philosophy: I Own Me (yep, boiled down to 6 letters))
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