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2009-11-11 — denninger.net
" If interest expense ever exceeds income, you're finished, just as was the "buyer" who took out an OptionARM and then had his payment reset to more than his income. Instant Boom. The same thing happens to nations. The problem is that nobody knows exactly where the line is, because that debt must be rolled, and it is the future cost of that rollover, not today's interest rates, that determine where the wall is."
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