Thomas Foley: “People do not realize the nexus. The Government is out bidding for dollars like a private consumer. So while the…”

“People do not realize the nexus. The Government is out bidding for dollars like a private consumer. So while the Government drives up interest costs with its ever-excessive appetite for credit, it is driving up comparable mortgage costs. A plain example by Mr. Greenspan is the fact that with current rates at about 74 o 75 o on a 30-year fixed home mortgage, we could see those rates decline to 6 percent, maybe below. A 2-percent difference in a $100,000 mortgage is $200 in savings in the consumer's pockets from interest savings alone, $2,000 per annum, which is about $180 per month in the homeowners' pockets to spend on their families, vacations, children's savings account, and what have you. So clearly, clearly the balanced budget will provide an economic windfall, not only for the taxpayers of having to pay fewer dollars into the public treasury, but more yield back home in their individual accounts.”