FED moving from 1% to 2.25% by Dec 2004, and 3% by May 2005, is not a prob

[papau]

So FED moving from 1% to 2.25% by Dec 2004, and 3% by May 2005, is not a problem?

http://www.latimes.com/business/la-fi-fed28jun28.story
THE NATION
Rate Hike Fears May Be Overblown
As the Fed prepares to tighten credit costs, some say the economic effect will be minimal.
By Tom Petruno and Kathy M. Kristof
Times Staff Writers

June 28, 2004

The cheapest money in 46 years soon will be history, if the Federal Reserve acts as expected this week and boosts interest rates.

Some economists are raising red flags: Higher rates can slow business investment, depress consumer spending and make heavy debt loads more onerous. The housing market, particularly in California, is seen as vulnerable because some people who bought using low-interest, adjustable loans may have trouble making payments as rates rise, leading to foreclosures.

Erin Grotz, however, doesn't see much reason to be concerned. She figures that the lowest credit costs in a generation will help her for years to come. <snip>

The optimistic view is that, as the expanding economy adds jobs and improves the outlook for workers in general, rising incomes will more than compensate for a lack of new mortgage refi savings, higher interest rates and higher debt levels.

"The time to worry about debt isn't when employment and incomes are accelerating," said Susan Sterne, president of Economic Analysis Associates in Greenwich, Conn.<snip>

[Kong]

1. Stupid Bitch

"The time to worry about debt isn't when employment and incomes are accelerating," said Susan Sterne, president of Economic Analysis Associates in Greenwich, Conn"

Is she out of her mind? No person is free as long as they shoulder oppressive debt, just becaue they have the ability to pay at the moment doesn't say a thing about the next moment.

Oh, and do you think for a second that the Administration gives a rats ass about forclosures in California, or Mass, or Md, or any other Democratic state with absurdly high housing cost? Hell no, any disruption to life in those states is to their advantage - they do not give a shit if every Democrat in California looses his or her home.

[Wright Patman]

2. Incomes are not rising

as fast as the rate of inflation. What's she smoking?

[tritsofme]

3. In May, inflation and personal incomes both advanced 0.6%

so it was a draw.