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

To: GraceZ who wrote (11413)	7/1/2003 2:53:25 AM
From: Neeka	Respond to of 306849

This certainly seems to indicate that an adjustment is in progress. Thanks for the link. M

To: GraceZ who wrote (11413)	7/1/2003 9:57:59 AM
From: bozwood	Read Replies (1) \| Respond to of 306849

But the actual debt as a % of income is at all time highs.

To: GraceZ who wrote (11413)	7/1/2003 12:47:30 PM
From: Mr. Sunshine	Read Replies (4) \| Respond to of 306849

Very interesting chart, but it needs a more detailed explanation. Is this saying that the "average" consumer is paying only 7.5% of his disposable income to service debt? I find that hard to believe, unless one considers the ultra rich who likely have no debt - that would skew the results. Perhaps a better figure would be the mean. How exactly are they defining "net disposable income"? How was the data collected? I looked quickly at the web site but did not see an obvious explanation of what the chart means, where the data came from, or who did the polling. Combined with my gut feeling that most people spend much more on debt service than the chart indicates, I will take it with a grain of salt. You can prove almost anything with statistics and fancy charts, which is why a detailed explanation is important to us skeptics.

To: GraceZ who wrote (11413)	7/1/2003 2:20:01 PM
From: J. P.	Read Replies (1) \| Respond to of 306849

Worked great through 13 interest rate cuts. Where are the next 13 rate cuts going to come from? How does the system work through 13 rate increases? What if the price of housing drops and your friends need to sell, is it possible they may have to cough the 36K right back? Edit: Maybe the fed can start cutting in increments of .1, that way they can ten more times for the last 1%!