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

To: Activatecard who wrote (32154)	5/10/2000 11:33:00 AM
From: pater tenebrarum	Respond to of 42523

i suppose so. eventually the rate increases should slow the housing market down, and i also expect defaults to rise. US households are incredibly overextended debt-wise. one of the favorite games played in recent years was to refinance the mortgage (i.e. get one of those 125% loans) and use the money to pay off credit card debt. thereafter, the credit card debt is run right back up again. also borrowing against stock market investments has been all the rage. household debt is at an incredible 105% of disposable income. if we get a recession, all those mortgage lenders will suffer mightily.