[originally posted November 2004] Usually I don't like to speak on issues that are already well-covered, but the economic position of the U.S. right now is a topic that cannot be spoken of enough.
With real estate and talk of currency troubles (aka: interest rate watch), we are watching like hawks these issues. Builders all around many metro suburbs are speculating with relatively cheap money, and banks are loading their balance sheets with really shaky things like "100% loans" (like an ARM with a balloon payment/refi instead of an adjustment). It looks scary. Moreover, it can happen like dominoes -- one big entity makes a move, and everyone (foreign financiers of U.S. debt) starts second guessing.