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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (2061)	7/14/2002 11:41:47 AM
From: Jim Willie CB	Read Replies (2) \| Respond to of 89467

agreed with Zeev, but he forgets to digress on followups a 30% RealEstate decline would send the US economy into a depression many people would walk away from their homes and mortgages exactly that, walk away they have already begun, in small, very small numbers he also vastly underestimates the effect of extended equity lines of credit, second mortgages, etc consumer purchasing power has been underwritten by this source of capital for several years now it will soon go away completely real estate cycles persist because of forced selling this is a market like any other, subject to momentum when layoffs accelerate later, then the next stage of economic deterioration engages REAL ESTATE IS THE MOST IMPORTANT SUPPLY OF CAPITAL FOR CONSUMER SPENDING NOW the great majority of Americans live well over their means the links are among real estate, consumer spending, corp profits this will completely unravel over time, slowly, inexorably we will witness the DECLINE OF AMERICAN CAPITALISM the lost purchasing power will cascade first lower revenues and earnings for companies then more layoffs, lower stock prices more dollar selling, more housing sales the real estate market is a critical component to the VICIOUS CYCLE 90% of Americans will be utterly shocked at the chaos no asset group will be spared no asset group has refused to participate in the bubble economy no asset group has been overlooked by the public for abuse of credit "party til you drop, dude" this is the American theme of the late 20th Century get ready to drop, dude / jim