People keep spending money they do not have...!
And now they can't even go bankrupt on these debts...as the credit card companies have a freer hand to make these credit card transactions more burdensome on consumers.
Clearly, the inflation numbers are going to continue bad...as the energy crisis works it's way into the economy. And the debt and deficits will keep enough pressure on the dollar to gaurantee HIGHER RATES for the indefinite future.
Still you have to wonder about all those folks who bought new GAS GUZZLERS from Detroit during the BIG SUMMER/AUTUMN/WINTER SALES! With high gas prices many of these cars are simply undrivable for long distance travel...of course, to the extent that people merely drive to work and back...maybe that's doable...but otherwise? I would expect that some will default on their contracts eventually as the economy continues to become more and more of an anomaly.
There is a MASSIVE CREDIT BUBBLE hiding in those GDP numbers today... And higher rates and lower bonds are now all but a given for 2006.
