Debt

The Bad News:

The crushing weight of Americans' debt load was underscored Thursday when the Federal Reserve reported Americans owed a record $943.5 billion in credit card debt at the end of December.

Including loans other than mortgages and home equity lines of credit, Americans are shouldering a record $2.5 trillion in debt.

But the "good news" is that some people are getting some money from the fed.

The package, which passed the Senate 81-16, will send rebate checks to 130 million Americans in amounts of $300 to $600 for people who have an income between $3,000 and $75,000, plus $300 per child. Couples earning up to $150,000 would get $1,200.

It might seem to some people that the government is giving away free money, but in reality, people have already paid that money in taxes that they're getting back.. so it's essentially meaningless. Still, if a few hundred bucks are important to somebody, then that's great they can use it.

I'm not real pleased with the breeder bonus though.. but again, if it's used for the kids, then great... but no doubt there will be some partying at the double-wide park when the checks roll in. It's also unfair that "couples" get a bonus, when some "couples" are not allowed to get married and receive the same benefits. That's a perfectly clear violation of the equal protection clause.

You know what might be a great economic "stimulus"? Ending the Iraq war. It costs a bloody fortune.

I wonder what the grand total of the "tax rebate" payout will be. It would be interesting to compare that to the total debt load.. and speaking of debt load, I know that sometimes bad shit happens and money is tight.. but mathmatically, people will be much farther ahead if they carry no debt load other than a mortgage (the interest is deductable). That means, no buying a $4,000 tv on credit with the assumption of paying it off later. Save up the 4 grand first.

I know that's common sense.. but obviously most Americans don't understand that interest will eat away their entire economic futures.