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To: E.J. Neitz Jr who wrote (49202)	9/9/2003 12:16:24 PM
From: BWAC	Respond to of 53068

Then I'd say the consumer is even deader in that scenario. Especially those who will be filling the lower paying service jobs that will be created. I "think" there is a disconnect on SI between the reality of what is happening to 70% of the citizens/consumers and what is happening to the better off 30%. I "think" most of us are lucky to be in the 30%, but we are far removed from the plight and serious undertow that is making financial difficulty for the 70%.

To: E.J. Neitz Jr who wrote (49202)	9/9/2003 12:43:18 PM
From: BWAC	Read Replies (1) \| Respond to of 53068

Whats going to happen to these people/consumers I see taking out mortgages (on houses I know they can't afford cause I do their tax planning work) when rates rise? They'll make it the 5 years in their 5year 5% ARM, or worse yet in their 5 year Interest Only mortgage. I know people who have maxed their possible monthly payment amount on interest only mortgages so they could buy the house in the exclusive hood, on the 1/4 acre lot, with $200 a month ASSociatin dues. What the heck are they going to do when rates rise, causing house prices to fall, and easy credit disappears? Sell the house? For whatever it brings? I'm seeing many of these same couples (no kids) that made $100k last year, with no savings, $10k in the stock market, can't "afford" to put back $25 a week for retirement, no home equity, house payments of $2400 a month, car payments of $1200 a month, and credit card bills of $30k. Tell me this isn't a looming disaster? Maybe I'm just running with the wrong crowd of debtors. But they are a happy bunch of people. Come to think of it, they all think I'm pretty darn stupid.