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The New York Times

edmundfitzgeraldedmundfitzgerald Posts: 4,306 ✭✭
in Precious Metals
The New York Times this week said that America's 14 trillion dollar debt is nothing more then your or I having a debt on our mortgage.

Thoughts ?

Comments

  • DrBusterDrBuster Posts: 5,412 ✭✭✭✭✭
    The Times is the top sheeple rag.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭


    << <i>The New York Times this week said that America's 14 trillion dollar debt is nothing more then your or I having a debt on our mortgage.

    Thoughts ? >>



    True enough.


    But what if each homeowner also has the following in additional to their $200K mortgage:

    1. $3 MILL in general obligations/entitlements we are responsible for going out 30-60 yrs.
    2. $3 MILL in guaranteed bets as we implicitly back the banks we have deposits in. (ie otc derivatives)

    In reality the mortgage is only 3% of all the other issues. Basically we'd be levered up 30X on current debts/obligations....just like our govt and banks.
    So I don't quite buy the NY Times example. The "small" $200K mortgage or in the govt's case the $14T "headline" US debt, is the least of our worries.


    roadrunner
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  • ranshdowranshdow Posts: 1,442 ✭✭✭✭
    It's a bit like someone with an income of $100,000 having a debt of $100,000, and devoting 5% of that income to debt service. That amortizes, but barely- at a l/t interest rate of 4.5% it amortizes over something like 45 years.

    It's not quite like a normal debt, in that the earner has very little influence on the size of that debt, the rate at which it grows, or what that money paid for. The only relation is that the earner gets to service it. On top of that, 20% of the servicer's other income goes to pay for things of similarly indirect benefit and discretion. These %age are very likely to increase over time, which is the problem.
  • derrybderryb Posts: 36,994 ✭✭✭✭✭


    << <i>The New York Times this week said that America's 14 trillion dollar debt is nothing more then your or I having a debt on our mortgage.

    Thoughts ? >>


    One big difference: If we don't honor our mortgage they take away the house. Maybe "we the people" should reposses the white house.

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • percybpercyb Posts: 3,328 ✭✭✭✭
    The NYT has no credibility left at all.
    "Poets are the unacknowledged legislators of the world." PBShelley
  • cladkingcladking Posts: 28,689 ✭✭✭✭✭


    << <i>One big difference: If we don't honor our mortgage they take away the house. Maybe "we the people" should reposses the white house. >>




    We need to take back the whole dang city.
    Tempus fugit.
  • jmski52jmski52 Posts: 22,941 ✭✭✭✭✭
    It's not quite like a normal debt, in that the earner has very little influence on the size of that debt, the rate at which it grows, or what that money paid for.

    Bingo! Major Difference!
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  • BBNBBN Posts: 3,761 ✭✭✭
    This sounds like some of Krugman's Keynesian drivel. I think he writes for the Times so I'm assuming this was his comment.

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  • OnlyGoldIsMoneyOnlyGoldIsMoney Posts: 3,371 ✭✭✭✭✭


    << <i>The New York Times this week said that America's 14 trillion dollar debt is nothing more then your or I having a debt on our mortgage.

    Thoughts ? >>




    If you liken the debt to a mortgage it is a "interest only" subprime mortgage that nevers touchs the principal. It is a debt that will never be repaid.

    I view the Slimes as little more than the official newspaper of the DNC. They set the weekly party line (much like Pravda once did) for their allies in broadcast media.
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  • DuCrozatDuCrozat Posts: 358
    The problem is, they will get a second, third, ad infinitum mortgage on the original mortgage, and eventually it's all over.

    These guys grew up in the "ME" generation: play now, pay later. Only they plan on leaving the debt to their grandchildren.
  • GoldbullyGoldbully Posts: 17,489 ✭✭✭✭✭
    image
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  • BBNBBN Posts: 3,761 ✭✭✭


    << <i> Only they plan on leaving the debt to their grandchildren. >>



    This here is the selfishness that I do not get from this group. "Screw the grandkids, I want it all now."

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  • JustacommemanJustacommeman Posts: 22,850 ✭✭✭✭✭
    Their crossword puzzles are good. MJ
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  • gecko109gecko109 Posts: 8,231 ✭


    << <i>The New York Times this week said that America's 14 trillion dollar debt is nothing more then your or I having a debt on our mortgage.

    Thoughts ? >>





    Disagree. 5 years ago I owed $230k on my home, today its about $220k.

    5 years ago, our national debt was $8 trillion, today its over $14 trillion.



    So while my mortgage obligation decreases each year, the national debt continues to increase each year. Unless the NYT is talking about a mortgage in which you cash out and refi every year, then they are simpleton morons.
  • 1Mike11Mike1 Posts: 4,416 ✭✭✭✭✭
    Whoever wrote it is obviously attempting to downplay the serious situation the tax payers are in due to some bad decisions made by past and present leaders/managers. Anyone not recognizing the troubles we face ahead is living a fabricated fantasy.
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