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Politics : American Presidential Politics and foreign affairs

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To: Peter Dierks who wrote (16025)	1/4/2007 10:39:51 AM
From: DuckTapeSunroof	Read Replies (1) of 71588

"I also pointed out that any gains in home values are magnified for the home owner due to leverage." True. And the leverage is generally geared higher then the average 'margin' leverage that is permitted for brokerage accounts. (Although, in futures markets, currency markets --- the world's greatest daily trading market in valuation, leverage can be even higher... at 100 to 1, or even 200 to 1.) "This also implies that losses in home values will have a magnified impact on highly leveraged home "owners". This could wipe out virtually the entire asset base for a significant portion of Americans if real estate prices rebalance." ABSOLUTELY true.

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