Coming home to roost...

[Bullypulpit]

<center><h1><a href=http://news.bbc.co.uk/2/hi/business/4287413.stm>Coming home to roost...</a></h1></center>

At least the chickens from the Bush administration's economic policies are. With Asian markets already saturated by US debt, <a href=http://news.ft.com/cms/s/6934a1a6-8541-11d9-a172-00000e2511c8.html>South Korea</a> announced that it was seeking to diversify its holdings in non-dollar equities. This in the face of record US trade and budget deficits and an already weak dollar. The net result was a drop in US bond prices with a rise in the yields. Down the road, this will result in higher consumer interest rates at a time when already over-stretched US borrowers can ill afford it. Also of note here is that more European central banks are starting to shift their holdings from dollar to euros

Of course, this will likely result in a whole slew of new bankruptcies. And, if the new <a href=http://www.consumeraffairs.com/news04/2005/bankruptcy_bill.html>bankruptcty bill</a> makes it out of the House and Senate, otherwise responsible folks will be facing years of indentured servitude to their creditors when they default on their debt due to medical emergencies, job loss or divorce. But the little fact that the majority of bankruptcies are the result of these causes has done little to deter the bills passage through committee...So much for compassionate conservatism. If creditors want to limit their losses, they need to stop extending credit to dead-beats. Can you say "responsible lending"...? I knew you could.

So, I hope you see that the fiscal irresponsiblity of the Bush administration has broad and far reaching consequences, both at home and abroad. My wife and I are going to be re-financing out of our ARM for a fixed rate mortgage in May, I would suggest anyone else with an ARM do the same.

Links:

http://news.bbc.co.uk/2/hi/business/4287413.stm

http://news.ft.com/cms/s/6934a1a6-8541-11d9-a172-00000e2511c8.html

http://www.consumeraffairs.com/news04/2005/bankruptcy_bill.html

 

[Fmr jarhead]

Of course your "article" does not account for any personal responsibility with regard to what you call "over-stretched US borrowers," at all. Taking on more debt due to low interest rates is not a fundamental right. It is a personal decision with ramifications that you seem to think will lay at the feet of the government when rates go up (as they always have historically from their lows)

Another complete fallacy is the widespread use of the "fall of the dollar" or the "weakening of the US dollar," so clearly pointed out by the disparity of exchage rate vs the Euro. If you really want to know the truth, the dollar has gained against the Euro over the last month or so with only some more recent losses that have not been the historical lows...but facts don't really matter with your agenda, or so it seems.

I understand your lack of understanding when a capitalist society decides to diversify its' portfolio of holdings to include other currencies, as many educated investors have done, to try and get the best returns possible. Many have already bought the Euro (as have I), but are looking very closely at it, since the rates have been inflated beyond what is normally acceptable.

A better move would be long term with the dollar, in my estimation, with the increase in productivity and all the other major economic indicators pointing toward greater growth, and paradoxically, higher interest rates that have stemmed the flow from the attacks we suffered on 9/11 where we could have plummeted in to a depression (and it sounds as though you would rather enjoy that with the current administration in place, in spite of what it would do to tens of millions of Americans, but not what your myopic end game is concerned with, now is it?)

 

[Bullypulpit]

Of course your "article" does not account for any personal responsibility with regard to what you call "over-stretched US borrowers," at all. Taking on more debt due to low interest rates is not a fundamental right. It is a personal decision with ramifications that you seem to think will lay at the feet of the government when rates go up (as they always have historically from their lows)

Another complete fallacy is the widespread use of the "fall of the dollar" or the "weakening of the US dollar," so clearly pointed out by the disparity of exchage rate vs the Euro. If you really want to know the truth, the dollar has gained against the Euro over the last month or so with only some more recent losses that have not been the historical lows...but facts don't really matter with your agenda, or so it seems.

I understand your lack of understanding when a capitalist society decides to diversify its' portfolio of holdings to include other currencies, as many educated investors have done, to try and get the best returns possible. Many have already bought the Euro (as have I), but are looking very closely at it, since the rates have been inflated beyond what is normally acceptable.

A better move would be long term with the dollar, in my estimation, with the increase in productivity and all the other major economic indicators pointing toward greater growth, and paradoxically, higher interest rates that have stemmed the flow from the attacks we suffered on 9/11 where we could have plummeted in to a depression (and it sounds as though you would rather enjoy that with the current administration in place, in spite of what it would do to tens of millions of Americans, but not what your myopic end game is concerned with, now is it?)

Taiwan and South Korea were planing on staying out ogf the treasury auctions today. And BTW, capitalism isn't bad. It's the unregulated, laissez-faire, winner-take-all capitalism DUbbyuh seems to prefer that is a corrosive element to society.

As for your jibes about enjoying an economic depression...well after I noticed your signature was a quote from Ann "Partei Sprecherein" Coulter, I just consider the source...and dismiss it.

 

[Merlin1047]

As for your jibes about enjoying an economic depression...well after I noticed your signature was a quote from Ann "Partei Sprecherein" Coulter, I just consider the source...and dismiss it.

aaah Mister Bully, if I may. I'd like to point out that you, of all people, are in no position to be critical of Ms. Coulter.

You know that occasionally you do make a valid point here and there. It would probably be more acceptable if one did not have to sift through the usual rabid diatribe to dig down to the semi-rational thought hidden amongst the ideology.

And as a footnote - Ann would kick your ass and you damn well know it.

 

[Fmr jarhead]

As for your jibes about enjoying an economic depression...well after I noticed your signature was a quote from Ann "Partei Sprecherein" Coulter, I just consider the source...and dismiss it.

I just thought it a funny quote....sorry the humor is not easily recognizable to someone as sensitive as yourself!