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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Katherine Derbyshire who wrote (31862)	8/12/1999 9:55:00 PM
From: John O'Neill	Respond to of 70976

<<Barring an economic meltdown, they simply aren't going to default (and lose their homes) in large numbers. with the new loans that one can borrow 125% of their equity....that could default...I heard a Gieco add allowin one to buy a new home with no down with cash back for funiture, etc...up to 1'25 % equity......all of this could go into default....if the wealth effect disappears for a while.....i believe it would be healthy to kick out the wealth effect with a dow decline to 5000 or so.... to make the babybooms more savy investors....they have many more years to to as investors and are destined to go broke with the current approach.