Petem95

http://globalresearch.ca/articles/ENG407A.html

Maybe a little scare-mongering, but nobody is denying that western countries have MASSIVE debts, everyone is buying stuff on cheap credit and against their houses increase in value - but thats been keeping the economy afloat - cant carry on for much longer tho.

Soon as people stop buying with their borrowed money, then jobs will be lost, interest rates will rise, house prices will crash etc etc

Cant really see another way out?....

fatherpierre

Bring it on.

Might make house prices affordable.

Leslie

I am surprised it has taken so long so far. That kind of borrowing is all very well at the time but eventually it has to be paid back and that is when it can start to hurt. I think it will eventually prove that the old ideas of saving for what you want are better in the end.

Les

paulr

Debt is only bad if you cant pay it off.

120k average motgage debt doesnt seem that bad considering mortgages are often over 25yrs,even if interest rates rise significantly.The value of your house doesnt matter as long as you can earn enough to pay off the debt.

120k over 25yrs@2%=558
120k over 25yrs@6%=773
120k over 25yrs@15%=1537

15% interest rates would be a killer.

The question is what does the future hold for interest rates?

paulr

Not as simple as that.There's good borrowing and bad borrowing.

lightning101

Who the hell can 'WESTERN' society borrow money from, to be in debt.


Russia - LOL

China - LOL

African Nations - LOL


We are borrowing from ourselves - so the same money just goes round and round, just to different people

paulr

If you read the above article it ways we are borrowing money from the far east/china.

lightning101

Nearly all of the worlds money can be traced back to us anyway, was the point I was making - not how good the far east is at trading for dollars.


Fanniemae or Ginnymae

paulr

Who cares anyway,there's no bailiffs in hell is there?

tiggers

Best hope we don't go back to the good old days of 1990 then - still according to most on here the Thatcher years were great so maybe 15.4% interest rates are what they want

NotoriousREV

Weird, I've read several articles this week proclaiming that the global economy is beginning to recover from it's slump

Leslie

Yes of course we all have to borrow money such as a mortgage etc, no way out of that, or if you want to get a house or buy a car maybe.

My point was meant to point out that unlimited use of the credit card eventually leads to debts that can't be serviced anf that is when the trouble starts as you might expect. Should have made that clearer I know.

Les