Now going on $9 trillion in federal debt growing year by year whether Democratic or Republican can it really be said that the Economy thrived under Greenspan/ The Fed while the debt grow? Credit Card Debt, Mortgage Debt, Installment loan and more are at record levels as is the interest on debt. Approximate 42% on American's monthly income goes to debtt payments....Sit and think about that

As Economy Thrived Under Greenspan, So Did Debt

By Nell Henderson
Washington Post Staff Writer
Monday, January 23, 2006; Page A01

Greenspan's Fed didn't do it alone, economists agree. Other factors helped fuel the borrowing binge, including global financial trends that have helped keep mortgage rates low and prompted lenders to extend more credit to more people.

The result is a prosperity built on borrowing, say many economists, pointing to a string of recent records and firsts:

· U.S. household debt hit a record $11.4 trillion in last year's third quarter, which ended Sept. 30, after shooting up at the fastest rate since 1985, according to Fed data.

· U.S. households spent a record 13.75 percent of their after-tax, or disposable, income on servicing their debts in the third quarter, the Fed reported.

· The trade deficit for last year is estimated to have swollen to another record high, above $700 billion, increasing America's indebtedness to foreigners.

"The economy's increasing reliance on unprecedented levels of debt is clearly unsustainable and extremely troubling," said Charles W. McMillion, chief economist with MBG Information Services, a financial analysis firm. "The only serious questions are when and how will current imbalances be addressed and what will be the consequences."
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