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

To: MulhollandDrive who wrote (10622)	10/30/2002 11:18:10 PM
From: Augustus Gloop	Read Replies (2) \| Respond to of 57110

The one good thing about debt being transferred to home equity is that it secures that debt to a degree. The problem is it almost makes people look as if they have been financially prudent when in fact they haven't. Few people are taking lower rates on mortgages to reduce the term of their note. Most are increasing outstanding debt and freeing up that nasty plastic for another round of unwise purchasing.

To: MulhollandDrive who wrote (10622)	10/30/2002 11:21:56 PM
From: X Y Zebra	Read Replies (2) \| Respond to of 57110

I am simply speaking from "what I see and have seen" I believe that while we are not at the best of times, on the other hand, the US economy is powerful enough that it could pull us fast out of the current situation. At times, I think that the press focuses on the extreme cases (of bankruptcy or horror stories). No I am not denying that we are in a bad situation, but at times, it sounds as though most people are a bunch of inept drunks. Not everyone is like that. So... I am not sure that we can compare (strictky speaking) our times with the 1929-36 period. There are areas of the country that the reason homes have gone up so fast is because the demand is simply huge and the combination of fair employment levels, low interest rates and the willingness to make certain sacrifices to get into homes. On top of that... permits to build said homes are so hard to get that supply simply lags. Again, I am not taking about all areas of the country... as example I would cite most of the states neighboring the West Coast where many city runaways are creating a boomlet for home builders and related in these smaller towns... Now... don't stone me... I will still short big fat flying pigs... -g