Sunday, September 06, 2009



there is a "critical level" beyond which all debts will default - without exception. That point is where the carrying cost exceeds income. For example, if you have a $100,000 mortgage and $9,999 (or less) in income, if the interest rate is 10% every such mortgage will default since you can't pay $10,000 with $9,999.

... I like this guy ...
... follow the link and go read his blog ...
... in a planet going insane ...
... a bit of "common sense" ...

... this leaves also a question mark also raised by Taleb ...
... regarding the accounting method used to compute available/disposable income ...
... and how "realistic" it is ...


# posted by intcoex : 5:10 PM




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