Tuesday, November 23, 2004
Gloom, Doom
Well it looks like we gloom and doomers, alarmists and naysayers have more and more respectable company these days. The chief economist at Morgan Stanley, Stephen Roach believes that we are heading for economic "Armageddon". Not in some remote distant future but right about ..... NOW!
"Roach marshaled alarming facts to support his argument.
To finance its current account deficit with the rest of the world, he said, America has to import $2.6 billion in cash. Every working day.
That is an amazing 80 percent of the entire world's net savings.
Sustainable? Hardly."
My humble advice to anyone with floating rate debt is to try to lock it in at a fixed rate now. Not next week. NOW! If you own a home and have an adjustable rate mortgage refinance it at a fixed rate now. If you are currently having trouble paying your minimum debt service on floating rate debt you will be in a world of hurt very soon. You will have plenty of company. Personal bankruptcies, already at record levels for several years, are headed through the roof.
But forget all that. Let's give Paris Hilton some more tax relief.
Well it looks like we gloom and doomers, alarmists and naysayers have more and more respectable company these days. The chief economist at Morgan Stanley, Stephen Roach believes that we are heading for economic "Armageddon". Not in some remote distant future but right about ..... NOW!
"Roach marshaled alarming facts to support his argument.
My humble advice to anyone with floating rate debt is to try to lock it in at a fixed rate now. Not next week. NOW! If you own a home and have an adjustable rate mortgage refinance it at a fixed rate now. If you are currently having trouble paying your minimum debt service on floating rate debt you will be in a world of hurt very soon. You will have plenty of company. Personal bankruptcies, already at record levels for several years, are headed through the roof.
But forget all that. Let's give Paris Hilton some more tax relief.
Comments:
Post a Comment
