Two Perspectives on the Economy’s Outlook

“Bears Refuse to Go Into Hibernation” [July 8] showed the other side of the economic coin, which often is not reported.

There are many who sense that the economy is still in a bubble mode, where it has been kept going by a huge accumulation of debt, both business and personal. Only so much future income can be committed to present consumption by borrowing, and then you reach a limit.

We have invented new debt-creation vehicles such as credit cards, and we refinance loans on houses, whose equity can be withdrawn and spent, all of which have contributed to purchasing power.

The Fed has cut interest rates, but they were also cut in the 1930s and didn’t do much to stimulate the economy. If people have too much debt or are worried about job security, no interest rate will induce them to borrow, as we see in Japan, where interest rates are near zero.

Robert C. Mason

Simi Valley

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Yes, folks, it’s true! The almighty “gloom and doomers” have reared their ugly heads once again.

It never ceases to amaze me how these arrogant gasbags who refer to themselves as “analysts” insist on spreading good cheer (yeah, right!) wherever they go.

They mention that we, the consumers, seem to be saying, “The hell with the pessimistic reports--we’re going to keep pressing forward and help the economy get back on its feet and keep spending.” They seem to say, “But you’re not supposed to be doing that. You’re supposed to do the conventional and practical thing and make things worse by not spending and not having a hopeful attitude.”

Mark Lawrence

Van Nuys