It is also down to Spain's appetite for paying penal borrowing costs for a period.
Nevertheless, the extended period of low borrowing costs has bred a new breed of investor.
The economy shows signs of stabilizing after a rough period, and borrowing for real estate is cheap with rates so low.
"I think we are moving from a 30 year period of just borrowing more and more money at the government level and also at the household level, " Knudstorp says.
But we did, through compromise, achieve some important things for the economy, for jobs -- which is a package that lifts the cloud of uncertainty of whether or not we were going to extend our borrowing authority for a significant period of time, and significantly -- has some significant initial deficit reduction attached to it, and creates a process for more significant deficit reduction.
"Elevated borrowing costs persisting for an extended period would amplify the fiscal challenges the French government faces amid a deteriorating growth outlook, with negative credit implications, " the agency said.
Look for a devalued currency and a very long period of hardly any cost of borrowing money.
They compare borrowing money over a 3 or 5 year period with their charges for one month, and suggest that their rates are cheaper!
Since then, the Treasury Secretary has been able to take extraordinary measures, as some of his predecessors have, in order to extend the period before we run out of borrowing authority.
When you use credit, you are borrowing money that you promise to pay back within a specified period of time.
And what is important about this is that we have not simply averted what would have been an absolute disaster, assuming, again, Congress acts, which would have been passing a period beyond which we would no longer have had borrowing authority and risking -- creating the possibility of default on our obligations for the first time in our history.
You and I, as individuals, can, by borrowing, live beyond our means, but for only a limited period of time.
When the boom period of credit expansion is coupled with growth in public sector borrowing, however, the subsequent negative impact on the economy will be worse.
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Moreover, this was a period in which banks and the global economy were awash with money, and borrowing costs for banks and companies were low.
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Because there are fees to do this, the council lowered the gold return over the time period studied and used a short-term cash rate as a benchmark for the borrowing cost.
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