The interest rates, such as home mortgages, many auto loans, some home equity lines of credit are on a high these days. In the business sphere, rates on corporate bonds are expected to go up. It would then become even more expensive to borrow in order to pay for new plants and equipment and other capital investments. All this is being attributed to a succession of budget deficits. Democrats blame the tax cuts for the government's red ink. Economists are vexed by the probabilities of budget deficits as the size of the current budget deficits as it is not clear if a crisis is imminent.
January 20, 2006
Budget Deficits
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