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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: double-plus-good who wrote (10648)	2/17/2000 3:39:00 PM
From: IceShark	Respond to of 42523

the wealth effect is a product of housing prices...ho ho ho. I agree, that has got to be the most asinine thing the senile old fool has said lately. The only thing I can think of is he really believes in and encourages the bubble and additional debt. As in my house is worth more (although we ignore that for CPI purposes) and my stocks are worth more. Now I could take some cash out of my investment account to buy a new car, OR, I could get a second on the house. Humm, I earn 200% on stocks, so that isn't smart, but I can deduct the interest on the second, so let's get a second to buy the car. Hey, wait a minute, why not just get a second, plow the money into the stock market, then buy that Humvee with a loan and pay for it with the stock winnings? Yeah, that's the plan. My home appreciation made me buy this Hummer. -g-