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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MSI who wrote (1146)	12/10/2001 2:44:31 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 306849

<<similar to the KEOGH pension objectives, the idea being an increase in equity for the average Joe, which bolsters the economy from the ground up>> Nice theory, except that home equity has been DECREASING (now at an post WWII low as percentage of home value), even as mortgage debt explodes. The crucial difference is that Keogh plans don't increase debt, and subsidized mortgages do, and massively. And yes, you could say it reduces the gap between haves and have-nots...in other words, redistribution of wealth by another name. Keogh plans merely provide compensation for labor by another means (equity instead of cash), which is an entirely different animal. If the debt that the current housing finance structure is pulled in, it will NOT "benefit us all"...quite the contrary, as unemployment and taxes will both rise.