Spike or Spendthrift

By June 12, 2009Economy

Wonder if one could turn “spendthrift” into a transitive noun: “We must not spendthrift our children’s heritage.” “Did you see Bob last week? Man, he spendthrifted his way into the poorhouse.”  “They spendthrift with no consideration of the economic impact.”

Just a thought upon reading this Washington Post story, “Spike in Interest Rates Could Choke Recovery“:

Rising long-term interest rates are making it more expensive for home buyers, corporations and the U.S. government to borrow money, threatening to further stifle an already weak economy.

In just the past two weeks, the rate on a 30-year, fixed-rate mortgage has risen to 5.6 percent from 4.9 percent, ending a boom in refinancing and working against a budding recovery in the housing market. Rates on corporate borrowing have also risen, making it more expensive for companies to expand. And the government has been forced to pay more to finance its deficit.

And …

. Investors around the world are increasingly fearful that Congress and the Obama administration will be unwilling to bring taxes and spending in line in the years ahead. That makes the U.S. government appear to be a riskier borrower, leading those who lend to it to demand higher interest payments.

You can just hear the German bankers: “Schade. Sie haben zu viel thriftgespendet.”

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