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To: Jim McMannis who wrote (168221)	7/15/2002 8:08:15 AM
From: John F. Dowd	Read Replies (2) \| Respond to of 186894

JMM: You miss the point. If a person owns a home and has refinanced it with present rates at a higher valuation he has taken equity out of the home. If the price of the home goes down and the mortgage market turns around the loser will be the bank not the consumer. The banks on the other hand usually turn around and hedge this bet as soon as they can. I just don't see the drastic result of the RE bubble whatever that is. The problem with home building and rising prices is that there are fewer people able to build a home on ever fewer available lots where people want to live. Prices are going up around here but they are not resulting in sales. The RE market up here will not close at present high prices. This will not cause any great hardship as few people are buying on spec if at all they will either just take their house off the market or accept a lower price. Those that refinanced did not do so to turn around and sell their house the next day. But if they did they have already monetized a great deal of their home by the refinancing. I don't think you understand what is going on here. perhaps there is a job for you at the misinformation club that is also known as CNBC.JFD