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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?


To: X Y Zebra who wrote (10621)10/30/2002 11:10:57 PM
From: MulhollandDrive  Read Replies (2) | Respond to of 57110
 
>>However, (particularly in times like today, or soon to come), There may be assets that will depreciate little (if at all). Still, there is a case to still use debt (within reason), as the debt used gives you the power of paying cash for it at depressed price levels, yet if one has the skill or desire to work, in which that skill is what creates the cash flow to cover the debt contracted<<

indeed i do believe we may have a continuance of asset deflation...particularly real estate.

and most especially in the areas which have developed bubblicious valuations...

it is my opinion that consumer debt is rising fastest...even within the context of extracting "equity" (fleeting?) in RE....of course if the "equity" is being used to pay down debt, that can be argued as good for the economy...but if that pay down only results in more short term debt accumulation, i think ultimately the consumer is further constrained creating more challenges for economic growth.