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Strategies & Market Trends : The Millennium Crash -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (4955)	2/17/2000 4:28:00 PM
From: Ilaine	Read Replies (2) \| Respond to of 5676

>>Secondly he insisted that not the stock market is the main wealth effect driver but housing prices.<< I must be missing something. Everyone has to live somewhere. If I own a house that appreciates in price, I can't spend it until I sell the house. If I sell my house, I still have to buy another one. I can take out a home equity loan, but that doesn't make me richer. It is true that with the new tax break on home sales, people don't have to roll over all the gain when they sell a house to avoid taxes, but they still need to invest something in the order of 20% as a down payment on the new house, and pay the real estate commission on the old house, maybe 6%. Is the money that's left over from those transactions what he's referring to? That's a new one on me.