Zeev's Turnips Patch-No Politics (ZEEV)

[Ace Hanlon]

Misoft:

I agree with what you say, but I think you may have missed the crucial point. To wit: Consumer debt service ratios are only "reasonable" because of the extraordinarily and unsustainably low level of interest rates prevailing now.

Consumer debt burdens are so high that even a modest rise in rates would greatly hike consumer debt repayment burdens with resultant heavy downward pressure on the economy.

This is an entirely new experience for the US economy and financial system.