I Am Bored

Loads of viral videos, games, memes, lists and social networking for when you're bored. Updated every day, so visit often.
Latest Popular Most Bookmarked Most Emailed Top Rated My Favorites Random Chat
All Games Funny Entertainment Quizzes Weird Tech Lifestyle, Arts & Lit. News & Politics Science Sports Misc
T-Shirts   Submit Content  

What Are The Dangers Of Too Much Debt?

A 1% increase in interest rates will cost as much as the Iraq war.

submitted by: AntEconomist
< Back Next >
What Are The Dangers Of Too Much Debt?. A 1% increase in interest rates will cost as much as the Iraq war.
+ Add to Favs
View/Add
Hits: 6906 | Favorites: 1 | Emailed: 1 | Rating: 2.9 | Category: News & Politics | Date: 03/21/2012
 
 popular today
Morbid Portrait [Pic] Made from 9 pints of the artist`s blood, frozen. That`s about the amount an averaged sized adult contains.
Is The Retailer `Zara` Anti-Semitic? [Pic] All signs point to.... you decide. Are people being too sensitive?
Failed World Record Bench Press Attempt Scott Mendelson takes a run at besting his all time raw bench World record of 716.5 lbs, but is injured in the attempt.
The Power Of Camouflage [Gif] You are suddenly surrounded.
Use Your Head... [Pic] Several times a day.
More Comments >

tobyvictory
Male, 70 & Over, Asia
 412 Posts
Thursday, March 22, 2012 9:16:16 AM
The debt is an issue only during election cycles. All sides blaming the others. Other times mums the word. Except for teabaggers like this douche!

airsofter1
Male, 18-29, Midwest US
 1089 Posts
Thursday, March 22, 2012 12:43:29 AM
obama: bitch please

HalfPintRoo
Female, 18-29, Eastern US
 2564 Posts
Wednesday, March 21, 2012 8:57:57 PM
dang007--- so we should do nothing?

AntEconomist
Male, 40-49, Eastern US
 321 Posts
Wednesday, March 21, 2012 8:47:32 PM
@wiscesq: 10 years ago, you'd have an argument. To take advantage of lower short term rates, the treasury has been rolling long term debt over to short term debt. The result is that the government debt is now highly exposed to short term interest rate changes.

wiscesq
Male, 30-39, Midwest US
 112 Posts
Wednesday, March 21, 2012 8:24:06 PM
The national debt is too high and is unfair to children and future generations, but this guy's analysis is simply wrong. While the government does refinance its debt to take advantage of decreasing interest rates, there is simply no reason it would refinance its entire debt if interest rates were increasing. New debt might be borrowed at the higher rate, but the interest expenses on the entire existing debt would not go up. If your mortgage rate was 5%, and the market went up to 7%, would you refinance your mortgage at the higher rate?

Neither would the government.

More Comments >
 


Bored | Suggest a Link | Contact I Am Bored | About I Am Bored | Link to I Am Bored | Live Submission | Privacy | TOS | Ad Choices | Copyright Policy |