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Politics : American Presidential Politics and foreign affairs

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To: DuckTapeSunroof who wrote (44919)	8/17/2010 6:45:35 PM
From: TimF	Read Replies (1) of 71588

(And I posted exact quotes from her saying just that. <GGG>) You did no such thing. You posted quotes of her saying something vaguely like that, but actually different. The quote is - ""What we know from the article is that a lot of the high-dollar value loans are in default:" and the specific data she quotes is - "More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic. " Again "high-dollar value loans" != "loans to people who are wealthy". People with "loans in excess of a million dollars", are not necessarily rich either in terms of income or assets. Other statements (some made by her, some quoted from the article) She also goes on to say "We don't even know that these people have more resources to draw upon, as Mr Khater implies. All the data I've seen show that millionaires--aka "high net worth individuals" are not particularly likely to live in million dollar homes. Who are? People who live in areas with expensive real estate. And where is the expensive real estate? Why, often in the areas that experienced the biggest inflation during the housing bubble. Those are places where homeowners are much more likely than the national average to owe more than the house is worth. And being underwater on your mortgage is very highly correlated with default--much more tightly correlated than the local unemployment rate." And as the first commenter says - "Conflating "the rich" with people who have high mortgages is... well, it's exactly how we got into this whole mess in the first place! "I have a huge mortgage and a fancy house, therefore I must be wealthy, therefore it's ok that I have a huge mortgage." " If you don't currently have a large income, and if your assets (in many of these cases mostly the house) are worth less than your debt (mostly the mortgage) than you are not wealthy. All the data presented in the blog post, the article it quoted, and the study the article was based on was about people with large loans, not wealthy people. They are not identical groups, and the former is not a subset of the later.

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