In the News II

Dimon talking about other countries having debt rated higher than the USA.

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“To have them be triple-A and not America is kind of ridiculous,”

-- Jamie Dimon.

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Quote: DoubleGold

Dimon talking about other countries having debt rated higher than the USA.

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“To have them be triple-A and not America is kind of ridiculous,”

-- Jamie Dimon.

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You owe your soul to the company store. Which in this case is China.

Quote: kenarman

You owe your soul to the company store. Which in this case is China.

That's all I got for 16 tons?

Quote: Gandler

That's all I got for 16 tons?

It was only 15 1/2 you get nothing. ;-)

Quote: kenarman

You owe your soul to the company store. Which in this case is China.

The debt downgrade sounds like a cost relative to the best rating.

I'm guessing about 5%.

So eventually .05 * $32T = $1.6T.

If over 10 years, $160 billion per year for newly issued debt.

Quote: DoubleGold

“To have them be triple-A and not America is kind of ridiculous,” -- Jamie Dimon.

Not ridiculous.

He is referring to Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore, Australia and Canada. All of which have sharply lower debt to GDP ratios than the basket case USA.

On top of that, the U.S. Debt is expected to keep growing.

US Debt to GDP 133%
Germany 59.8%
Denmark 33.2%
Netherlands 48.6%
Switzerland 25%
Australia 33.8%
Canada 36.3%

Singapore shows a 140% ratio, but claims to have Zero net debt, since its external debts are mainly foreign deposits in Singapore banks. Which may be true since it maintains an AAA rating.

In addition to a low debt to nominal GDP ratio, nations must also be stable.

Russia has a ratio of 23%, but only has a 'C' rating.

Quote: Tanko

Not ridiculous.

He is referring to Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore, Australia and Canada. All of which have sharply lower debt to GDP ratios than the basket case USA.

On top of that, the U.S. Debt is expected to keep growing.

US Debt to GDP 133%
Germany 59.8%
Denmark 33.2%
Netherlands 48.6%
Switzerland 25%
Australia 33.8%
Canada 36.3%

Singapore shows a 140% ratio, but claims to have Zero net debt, since its external debts are mainly foreign deposits in Singapore banks. Which may be true since it maintains an AAA rating.

In addition to a low debt to nominal GDP ratio, nations must also be stable.

Russia has a ratio of 23%, but only has a 'C' rating.

What are the percentages for an underwriter to limit an individual's debt to income ratio?

For a house mortgage, it used to be around 25%.

So anything over 25% for a home lender, could be extra risky.

Quote: DoubleGold

Quote: Tanko

Not ridiculous.

He is referring to Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore, Australia and Canada. All of which have sharply lower debt to GDP ratios than the basket case USA.

On top of that, the U.S. Debt is expected to keep growing.

US Debt to GDP 133%
Germany 59.8%
Denmark 33.2%
Netherlands 48.6%
Switzerland 25%
Australia 33.8%
Canada 36.3%

Singapore shows a 140% ratio, but claims to have Zero net debt, since its external debts are mainly foreign deposits in Singapore banks. Which may be true since it maintains an AAA rating.

In addition to a low debt to nominal GDP ratio, nations must also be stable.

Russia has a ratio of 23%, but only has a 'C' rating.

What are the percentages for an underwriter to limit an individual's debt to income ratio?

For a house mortgage, it used to be around 25%.

So anything over 25% for a home lender, could be extra risky.

When I last did mortgages max DTI was 43-45%.

Quote: AZDuffman

Quote: DoubleGold

Quote: Tanko

Not ridiculous.

He is referring to Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore, Australia and Canada. All of which have sharply lower debt to GDP ratios than the basket case USA.

On top of that, the U.S. Debt is expected to keep growing.

US Debt to GDP 133%
Germany 59.8%
Denmark 33.2%
Netherlands 48.6%
Switzerland 25%
Australia 33.8%
Canada 36.3%

Singapore shows a 140% ratio, but claims to have Zero net debt, since its external debts are mainly foreign deposits in Singapore banks. Which may be true since it maintains an AAA rating.

In addition to a low debt to nominal GDP ratio, nations must also be stable.

Russia has a ratio of 23%, but only has a 'C' rating.

What are the percentages for an underwriter to limit an individual's debt to income ratio?

For a house mortgage, it used to be around 25%.

So anything over 25% for a home lender, could be extra risky.

When I last did mortgages max DTI was 43-45%.

Was that with private insurance or extra insurance?

Quote: AZDuffman

When I last did mortgages max DTI was 43-45%.

I have to know when! Was it pre-2008?