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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: russwinter who wrote (71851)10/13/2006 12:09:46 PM
From: John Vosilla   of 110194
 
<<More than a third of homeowners, approximately 34 percent, own their homes free and clear."

This group is probably risk adverse and it's unlikely they will borrow significantly on their homes to fuel consumption. So the entire debt burden falls on the other 66%. >>

So you've got a large pool of people now in this country with incredible wealth beyond what most would have ever thought even a decade ago. And I'm not just talking about the superwealthy or the top 5% but tens of millions of formerly middle class barely getting by now millionaires from the coastal housing bubble. Then you have those less fortunate and younger barely getting by. Those with little or no equity might not be that big a deal this next downturn since they only need a job and continued easy access to credit to stay afloat, continue spending and keep the US consumerism engine running.. The fact they lose what little perceived equity they had in their home is a blip in the big picture..
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