Greece appears to have staved off fiscal annihilation for the moment, yet its fiscal death march into oblivion continues apace. Other major Eurozone players have spent themselves into similarly precarious positions. Here in the US, our gross national debt has surpassed 100 percent of GDP, and the CBO is warning anyone who will listen that very dark days lie ahead unless significant action is taken -- and soon. Last summer, our national credit rating was downgraded for the first time ever, due to the lack of will in Washington to adequately address our own looming...
In the old days, before the housing mess, a person making $50k a year would not get a mortgage for 3 times his salary, let alone more than that. Banks simply didn't do that. The rule was 2.5x one's salary. And it was typically a 30-year fixed mortgage, meaning that 1) a person knew exactly what the payment would be, 2) it would not increase unless the homeowner refinanced, and 3) the debt would go down year after year until it was paid off. Given that our national debt is largely (80%) financed with short-term bonds, we don't know what we'll be paying in 2 years because interest rates could and will go up and we are adding to the debt every day, not paying it down. So, your analogy is an epic fail across the board.
- Quotes of the day Allahpundit 4 hours ago
- Good: Comedienne refuses to apologize for telling jokes Mary Katharine Ham 5 hours ago
- Shocking report: Obama didn’t even finish Jiro’s sushi Mary Katharine Ham 5 hours ago
- Who’s up for a Throwback Thursday with Kim Jong Un? Erika Johnsen 6 hours ago
- Georgia governor signs liberalizing concealed carry law Erika Johnsen 6 hours ago
- McCain: It’s a stain on America’s honor that we haven’t passed amnesty yet Allahpundit 8 hours ago