I must not keep Hale “bonddad” Stewart to myself any longer. He’s not much of a speller but on $$$ has been right way more often than not during the two years I’ve been reading him. In a post entitled, “Why Paulson’s Plan Could Lead to More Trouble”:
The Treasury’s potential use of all $700 billion to purchase impaired assets would raise the country’s debt to more than 70 percent of GDP. The last time American taxpayers owed as much was in 1954, when the nation was still paying down costs incurred during World War II.
“It’s an alarming level of debt given that we’re not fighting something like World War II,” said Robert Bixby, executive director of the Concord Coalition, a non-partisan budget watchdog group.
The government reaching the requested debt limit would entail every man, woman and child in the U.S. owing more than $37,000 each. The median U.S. income last year was $50,233.
[Related addition: If your home is in foreclosure, should you lose your vote?]