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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: rolatzi who wrote (59135)1/18/2001 11:27:59 AM
From: Perspective  Read Replies (2) of 436258
 
Our widespread use of mortgage loans and home equity lines of credit actually makes the wealth effect STRONGER here than in Japan. Whereas the Japanese would be unlikely to pull newfound equity out of their homes during a bubble, we are thrilled to pull all the cash we can out of our homes.

Thank you for pointing out yet another way in which we are WORSE off than the Japanese before their real estate bubble burst. When our real estate bubble finally reverses course and the home equity loans stop, the impact on the economy will be huge.

This means, of course, that the real estate bubble must also burst in order for the Mania to finally, truly die it's long-deserved death.

BC
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