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

To: MulhollandDrive who wrote (1937)	2/26/2002 4:32:14 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

re: borrowing against a house to buy stock. Anyone who had taken the trouble to consult a competent and reputable financial advisor before doing that would have been told NOT to do it, but I do know some people did. If their home increased in value, but their stock didn't, and they're now stuck paying principal and interest on a bigger mortgage, I'm sure they've already absorbed the lesson. Too bad. And yes, granting seller financing is a wonderful thing. Amazing how few sellers I could ever convince to do that. They wanted to SEE da munny. Am currently getting a 10-percent yield on a little piece of land myself. It's not much but it's nice to have the checks roll in.

To: MulhollandDrive who wrote (1937)	2/26/2002 4:48:18 PM
From: patron_anejo_por_favor	Respond to of 306849

<<I'm not sure a converse scenario (cashing out and into real estate) can be extrapolated as a signal of the bottom..just one of those things that makes you go...hmmmmmmmmmmm>> I've been thinking about this...there has obviously been a large amount of money moved out of stocks (ie, the NazDung down a few trillion in market cap from it's peak). Some of the money went to money heaven, some into MM's, some into real estate. Seems very unlikely that the part that went into real estate (frequently referred to by BubbleVision and others as "money on the sidelines") is EVER coming back into stocks. In fact, as the debt for RE grows (and even Tradelite would concede that debt for residential RE has grown rapidly), it represents a great sucking sound that will pull money out of the stock market and other sectors of the economy for years to come.

To: MulhollandDrive who wrote (1937)	2/26/2002 5:08:05 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

<<I'm not sure a converse scenario (cashing out and into real estate) can be extrapolated as a signal of the bottom..just one of those things that makes you go...hmmmmmmmmmmm.>> In fact you could think of this as being a "reverse 401K" in terms of its effect on the stock markets. Housing is a long-term obligation that will divert money from the market for years. Remember when the bubble was rolling, how every month the indices would jump around the first of the month, allegedly from "mutual fund 401K inflows" (although in truth it was more due to tape painting and window dressing). In any event, that's gone, gone, gone.