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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (62967)	6/22/1999 5:54:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

bp, I know for a fact more folks are buying stocks on margin than with mortgages. <g> I feel like raising rates to curb asset inflation is like using a nuclear bomb to root out a gangster in a big city. It certainly can achieve the goal, but lots of folks who aren't gangsters get killed, too.

To: MulhollandDrive who wrote (62967)	6/22/1999 6:01:00 PM
From: Cynic 2005	Read Replies (1) \| Respond to of 132070

<<That's a very good point. I think that real interest rates are actually still too high. If the concern is over asset inflation, then use the tool you have to attack the culprit directly, excessive speculation with borrowed money. I frankly think the number of people taking second mortgages on their homes to buy stocks has to statistically nil.>> Betty, Mohan is right. He sensed good in you long ago. -g-

To: MulhollandDrive who wrote (62967)	6/22/1999 7:39:00 PM
From: PaperChase	Read Replies (1) \| Respond to of 132070

>>I frankly think the number of people taking second mortgages on their homes to buy stocks has to statistically nil. << Probably, but people are using that money at the retail level. I have heard more than a few stories from realtors who find a buyer for a house only to have the deal fall thru because of 150% LTV mortgages on the house. However, what comes around goes around and this excessive borrowing in itself could ironically lead to higher real estate prices by constraining supply. AG raising rates will be the "wimper heard around the world". I am buying the dip.