Letters to the Editor
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Of recessions and interest rates
1) According to the most recent figures on growth (0.6% 4th quarter GDP), we are not currently in a recession. We are certainly in a period of slow growth that may feel recessionary, and we may yet experience one in 2008, but can we please keep our terms straight? Stop the fear-mongering.
2) Anybody who takes out a mortgage at 2% and believes it won't reset higher is someone I'd like to speak to about my tropical beachfront property in Alaska. Unfortunately, there were lots of greedy and/or naive people who bought more house than they could afford in the past few years. Thus, it only stands to reason that many of them will ultimately lose it. I don't know why this is everyone else's problem. More than 99% of U.S. homes are not in foreclosure.