Re: Refuting supply-side economics

From: Rue The Day (ruetheday_at_outgun.com)
Date: 09/17/04 

Date: 17 Sep 2004 12:14:48 -0700

Keynes <Keynes@earthlinkspam.net> wrote in message news:<irjjk0dblpota3oho45jpfeo28tdd0ghae@4ax.com>...
> Have you seen those recent ads for new lowest payment mortgages?
> The deal is that you only have to pay interest on the mortgage
> and not the principle (unless you feel like doing it).

That sounds like a Hyman Minsky-esque move from a hedge position to a
speculative position. Perhaps the next fad in mortgages will be to
start with one of these interest-only mortgages knowing full well that
the person's income can't even cover the interest and then take out a
series of additional mini-mortgages just to make the interest payments
on the first mortgage. I'm sure the CNBC crowd will push it big time.

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