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To: John Dally who wrote (624)	7/6/1999 11:07:00 AM
From: Arik T.G.	Read Replies (1) \| Respond to of 686

John, The article explains the negative savings rate. Homeowners got more leverage and used the extra cash to buy durable goods. That couple bought cherry cabinets on margin. Almost the same as buying stocks on margin, only when it goes sour on you, you get thrown out of your home. ATG

To: John Dally who wrote (624)	7/8/1999 2:09:00 PM
From: yard_man	Read Replies (1) \| Respond to of 686

>>Bank One derived that number using data from a recent study by mortgage lender Freddie Mac, which found that 51% of borrowers who refinanced in 1998 pulled out an average of 11% of their homes' equity. << Economy's great and Clinton's doing a good job. Future looks very bright. -s- Wonder what the average equity is for those who have home loans right now and how that compares historically. Put that together with recent prices, and consider where prices may be in the next 5 years ...