Re: Dessauer's non-bearish view on American debt

Bob Bronson said:

> Just because a credit card issuer offers 0% 
> interest on balance transfers to win you over, doesn't
> mean it's prudent to load up on even more debt because 
> your cash flow can temporarily handle more of it.

Yes!  The most key point of this decade!

Bob,

We are witnessing, in real time, the way in which debt
piles up.

And, how the Fed has played into the game, the wrong way.

By drastically lowered interest rates, they are providing
exactly the wrong signal to consumers.

When consumers should be paying off their debts, they see
the reduced rate as a bonanza, where they can "have their
cake and eat it too."

And this fellow Greenspan was just reappointed ???  (politics
as usual -- Bush doesn't want a collapse on "his watch."  Time
will tell.)

Regards,

Curt
-- 


           W. Curtiss Priest, Director, CITS
        Research Affiliate, Culture & Media, MIT
      Center for Information, Technology & Society
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