John and Mary
are spoiled Gen-X brats who are used to having stuff now. While John earns a mid six-figure
income, they are drowning in debt. Finally, unable to
sleep at night, they've decided to
get a grip. They'll have to sell their home in Potomac, MD and
move to Prince George's County, where homes are cheaper and his
commute to work much shorter. Their daughters, age 13 and 15, are
still crying hysterically as we speak with the news that Bullis Prep is
out, and public school in. Mary, a proliferate spender,
sobs as well while taking scissors to about a dozen credit cards.
Depending on what their home sells for, John figures that they can
become solvent in from 5 to 8 years. He calls his mortgage
company, bank, credit card companies and other debtors and petitions
them. He assures that monthly interest payments will be paid
promptly, with payment on the principal rationed for the time
being. Here's the responses.
The Mortgage Holder: "Yes, but only
if you take out a third mortgage with us."
The
Credit Card Company: "Yes, but only if you increase your average
monthly purchases,"
The
Car Loan Company: "Yes, but only if you trade in for a
new Mercedes S600 sedan."
Mookys
Rating Se vice: Unless you take out additional loans in
order to keep spending up, your credit rating will be lowered and
you'll have to get credit from Crazy Al's Finance.
Ridiculous? Of course. So explain this
to me.
“
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With rating
agencies warning about downgrading the United States’ credit, which
could lead to a surge in interest rates and a shock to the markets, (if
the debt limit isn't raised)
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Am I missing
something? I'm not the only one at sea here, pretty sure of
that. Remember, we
are in good shape when it comes to meeting our interest obligations -
as long as we sell the Mercedes, send the kids to public school, and
quit hiring pool-boys and French chefs. So
what's with the threats from ratings services like Moodys and
S&P? Raise your debt limit or else ... .?
Real Question
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