From: "Tim" 
Newsgroups: uk.politics.misc uk.finance uk.politics.economics
Subject: Re: "Its different this time". They said the same before and during the last crash.
Date: Sun, 27 Nov 2005 10:05:36 +0000 (UTC)

> > "Crowley" wrote
> > > Yes and there's a rather significant difference
> > > between the level of debt then and now.
> >
> "Tim" wrote:
> > What would be the problem with (say) GBP
> > 100 trillion debt, if interest rates were 0.00% ?!
>
"Crowley" wrote
> If our interest rates were 0.00% it
> would signify that the economy was
> f>cked regardless of levels of debt...

Specifically, in what way?
What exactly would be the problems of high debt, if there were no cost to
service it (0% rates)?

"Crowley" wrote
> If rates went up to a historical running average
> of around 6% imagine the effect that would have.

If they *did*, then perhaps there might be some house price falls at that
time.  But *before* that happens, why (do you think) house prices would
fall?