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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.
34 posted on 02/26/2010 12:58:18 PM PST by WILLIALAL
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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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