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

To: bozwood who wrote (11451)	7/2/2003 2:23:21 PM
From: GraceZ	Read Replies (1) \| Respond to of 306849

I grew up in the 1950s, my parents lived through the depression and I grew up hearing their stories about losing the house and losing the farm. Anyone who has lived through such a time has a natural distrust of debt and leverage. We live in a time where there is inherently greater trust in financial institutions and in credit itself. It's not surprising that people are more willing to leverage themselves to a higher degree, but what is amazing is that when you look at the percentage of income used to service this debt it looks incredibly benign. It is remarkably stable over time moving from 11.5% to 14.5% and back and is hardly catastrophic, portending eminent collapse considering we've been at that level many times in my lifetime. Also, the low percentage shows that we have an enormous amount of uncounted savings on a macro basis in the US.