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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: John Madarasz who wrote (49077)	5/2/2000 10:53:00 PM
From: Casaubon	Read Replies (1) \| Respond to of 99985

OT Presently, as ebullient American homeowners watch their equity mushroom like never before - providing certainly no ?newsworthy? accounts of a rash of foreclosures - scant attention is paid to the continued egregious use of credit that has for some time fueled an historic real estate bubble. In fact, the enormous real estate bubble is today the best-kept secret in US finance and economics. Total household mortgage debt ended 1999 at more than $5 trillion. During just the past two years, household mortgage debt increased by almost $770 billion, or five and one-half times the increase in margin debt. During 1999 alone, $473 billion of new household mortgage debt was created, a 60% increase from 1998?s mortgage debt creation. 1999?s additional mortgage credit was almost double 1997?s $250 billion, and 150% greater than 1995?s $188 billion. At the same time, new housing starts during 1999 were only 3% above 1998, 13% greater than 1997 and 23% above 1995. Obviously, it is not the financing of new housing construction that is behind the unprecedented explosion in mortgage credit. Instead, this massive over-expansion of credit is feeding directly into inflated housing prices. you know what's really criminal? The fact that people who work full time can't afford their own home. They have to mortgage themselves for the rest of their lives. It's $#*^ing slavery.