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To: Ilaine who wrote (96817)	4/20/2001 11:21:03 AM
From: Box-By-The-Riviera™	Respond to of 436258

interesting!

To: Ilaine who wrote (96817)	4/20/2001 11:28:13 AM
From: Les H	Read Replies (3) \| Respond to of 436258

Issuers flood market with cc offers on eve of bankruptcy law consumerfed.org look at all that unused credit that could go into the stock market... High debt balance worries crimped past holiday spending plans consumerfed.org that didn't last long...

To: Ilaine who wrote (96817)	4/20/2001 11:31:07 AM
From: GraceZ	Read Replies (2) \| Respond to of 436258

Hey but what does that mean for my gold? -g- I'm glad you guys had this little debate about housing inflation because it prompted me to pull up the Maryland Real Estate sites that have listings in the areas that I own houses. Great news! The houses I own in the city, their prices are finally above where they were 12 YEARS ago so now it looks like I can finally get rid of them. My house in the country on the other hand has almost doubled in price in the last 6 years. If you want to understand inflation in real estate you have to understand it's a highly local phenomenon. In Baltimore City it's down to neighborhoods.

To: Ilaine who wrote (96817)	4/20/2001 11:44:06 AM
From: TobagoJack	Read Replies (4) \| Respond to of 436258

Hi CB, Ignoring the government's own caveats on the statistical series for the moment, household debt is at an all time high ... the burden, or amount necessary to service is, merely higher than before. The interest rate back in the 1980s were high, debt load lower, income lower, and thus debt burden of around 13%. Now, debt level higher, income higher, interest rate much much lower, and thus debt service burden of around 14%. Should Al lower short term rates to 0% and hold up the USD, allowing the long rate to drop as well, the service burden will continue to be benign. In the coming quarters, income goes where? debt stays, interest rate/inflation rate goes wherelse? Do not know yet. Japan has large multi-generation mortgage loans, though at tiny interest rate, and thus at similarly tiny debt service burden. federalreserve.gov QUOTE The household debt-service burden is the ratio of household debt payments to disposable income. The limitations of current sources of data make the calculation of the ratio especially difficult. The ideal data set for such a calculation would have the required payments on every loan held by every household in the United States. Such a data set is not available, and thus the calculated series is only a rough approximation of the current debt-service burden faced by households. Nonetheless, this rough approximation may be useful if, by using the same method and data series over time, it generates a time series that captures the important changes in household debt service payments. The series will be revised as better data or improved methods of estimation become available. To create the measure of burden, payments are calculated separately for revolving debt and for each type of closed-end debt, and the sum of these payments is divided by disposable personal income as reported in the national income and product accounts. For revolving debt, the assumed required minimum payment is 2-1/2 percent of the balance per month. This estimate is based on the January 1999 Senior Loan Officer Opinion Survey, in which most banks indicated that required monthly minimum payments on credit cards ranged between 2 percent and 3 percent and had not changed substantially over the previous decade. Payments on closed-end loans, which are calculated for each major category of closed-end loan, are derived from the loan amount outstanding, the average interest rate, and the remaining maturity on the stock of outstanding debt. Estimates of the amount of mortgage debt are taken from the Federal Reserve Board's flow of funds accounts, and estimates of outstanding consumer debt are taken from the Federal Reserve's G.19 statistical release. For consumer debt, a more detailed breakdown by type of closed-end loan is obtained using internal Federal Reserve estimates and data from the installment credit publications of the American Bankers Association. Interest rates on closed-end consumer loans are obtained from the Federal Reserve's G.19 and G.20 statistical releases, with the exception of student loan rates, which are obtained from the Student Loan Marketing Association (Sallie Mae). An estimate of the interest rate on the stock of outstanding debt is obtained by weighting the recent history of interest rates using information on the age of outstanding loans in the Federal Reserve Board's Survey of Consumer Finances. The interest rate on the stock of outstanding mortgage debt is an estimate provided by the U.S. Department of Commerce, Bureau of Economic Analysis. Maturity series for consumer debt are taken from the G.19 release and from the American Bankers Association's installment credit publications. Maturity series for mortgage debt are obtained from Credit Suisse First Boston. Quarterly values for the total debt-service burden as well as values for the consumer debt and mortgage debt-service burden are available from 1980 forward. UNQUOTE