MDA - Market Direction Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 671.91

0.0%

Nov 14 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: tony who wrote (70371)	2/24/2001 5:10:05 PM
From: JRI	Read Replies (1) of 99985

Tony, I am not just talking about those who take out home equity loans....when some people's home values go up, they sometimes tend to save less out their paycheck (consume more)....figuring they are that much richer (due to the increase in home equity...that is their "savings")....a similar effect happens with equity gains....not everyone cashes out and consumes more stuff during a bull run, but often people will save less, and consume more(essentially "cashing out")...while holding their portfolio....Problem is, when the underlying assets that essentially "collatorized" those purchases go down in value, well, you get the picture...Now that they've lost these "savings", they have to go back to saving 3,5, 8% out their paychecks again...and that is the impact (loss) to consumer spending (and a material one, I may add)..

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next