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Old 01-26-2009, 09:45 PM
trent trent is offline
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Quote:
Originally Posted by Canadian View Post
They can lower rates to 0%, but if consumers are not willing to borrow more, then the banks and the establishment have a big problem.
The banks have a problem either way. If the consumers stop borrowing, then the economy is toast, because is based largely on debt versus savings. If the consumers keep on borrowing for a while longer, then the mountain of debt grows even higher and the pain will be even greater, albeit delayed.
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