Pay as you go? Even if one wasn't filthy stinkin' rich (to use OJ's phrase), the mortgage interest tax deduction absolutely impels rational people to finance the purchase of their residence....and Kerry's beloved middle class buy their cars, big screen tv's and pretty much everything else on credit...

That would be me. We paid off our house in 11 years. Every October she gets in a foul mood because that is the month years ago she messed up and paid ten cents in credit card interest. She hates debt almost as much as she hates the terrorists and some Democrats.

On a more serious note, which tax giveaways is he going to end? How will raising taxes on corporations encourage them to stay here? Isn't he also going to give tax incentives to corporations to keep jobs here?

Rick:

No education debt? Enough saved to pay cash when your kids go?

Debt for investment is good. Debt for consumption is generally bad. Consumer debt is really only responsible if its for essentials (a car so you can get to work) or as a cash flow management tool.

The US govt debt is too big and bad in almost all ways. Previous govt debt was never an issue because the govt had plenty of room to increase tax revenues to satisfy any debt caused by spending on a crisis. That hasn't been the case since the 1960's. The US has a pile of obligations that must be paid and not much room to maneuver without causing other problems. I fear our situation is not like Britain or the US in the 19th Century, but Argentina in the 20th.

Chris:

While your sentiment is noble, consider that the US economy has probably doubled in size since 1970 (don't know the exact data). Argentina's has not.

Tax on corporations is the height in political obfuscation. Corporations don't pay taxes, people pay corporation taxes.

Chris:

Why is consumer debt bad if you have many times as much saved in your 401k and/or your house or whatever?

OJ:

What little there was paid off years ago. The Wife got an offer from her parents of either wedding or law school. We eloped.

Money will be left for surviving cats to live a lifestyle to which they have been accustomed :) Children should pay for their own school. Nobody appreciates anything given to them for free, including the cats.

OJ, it is not debt per-se, it is the growth rate in debt. Once you start a trend where debt grows faster than income, you are on the path to a credit crunch. As with all things, debt is ok, until it's not.

I didn't think that I would have to use this oft-stated trusim with a "conservative", but There Is No Such Thing as a Free Lunch(TINSTAAFL).

Yes, debt grew faster than GDP all through those earlier years, then it didn't. But there was never a crunch. Lunch isn't free, but it is more than paid for:

http://www.lordabbett.com/usa/insights/article.jsp?OID=11793

Rick:

You are the exception that proves the rule.

Mr. Judd;

You can put me in Rick's exception as well. We even buy our cars with cash. Although maybe you'd count me as filthy stinkin' rich.

All old people are wealthy.

If things go the way they look, I should be debt-free (mortgage paid off) by the time I'm 50 or so. I've been living about $10,000/year below my means and using the difference to save and buy down my remaining debt. Plus, I've paid cash for cars ever since getting hit with 20% interest on a car loan back in '81.

Interesting article OJ. Of course, as you might be suspicious of bearish analysis from a Gold website, you should be equally wary of bullish analysis from a money management firm like Lord Abbett. Basically he is trying to point out the positive aspects of negative economic developments - looking for the pony in the pile of manure. His analysis doesn't even touch government deficits and trade deficites.

Because they're meaningless?

OJ:

You wrote, 'Rick, You are the exception that proves the rule.'

Translating that phrase into modern English, it should read, You are the exception that tests the rule.