While tax deductions on interest payments are helpful, the after-tax expense of borrowing that much money is conservatively about $700 a month, based on a 5.5percentt mortgage rate.
"Total debt cancellation for those countries alone would come at the expense of other borrowing countries," the institutions concluded in July 2001.
Automakers, especially the domestic automakers, are likely to choose to absorb the higher cost of borrowing money -- at the expense of profitability -- rather than ratchet down incentives.
But pressure group Save our Savers expressed "dismay", saying it would cause further hardship for savers and pensioners, while continuing to favour borrowing at the expense of saving.
The financial system is geared towards helping the profligate government borrow cheaply at the expense of savers.
Wars are traditionally a valid reason to run budget deficits, because it makes sense for the government to borrow to cover the expense of a severe but temporary emergency.
It means either the expense of calling in Steve the roofer or, worse, the humiliation of borrowing the long ladder of Doug, my wealthy, retired and inquisitive next-door neighbour.
GLG said that its net interest expense was $4 million, driven by the cost of borrowing under its credit facilities.
First there is the expense of establishing the stock reserve either through tax revenues or through borrowing.
"We're going out and getting a payday loan, so that everything from now to the end of this year will seem like it's okay," he said, referring to the practice of borrowing for today's expenses from your next paycheck.
