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To: BWAC who wrote (49373)	10/7/2003 5:05:27 PM
From: E.J. Neitz Jr	Read Replies (1) \| Respond to of 53068

Just imagine...if home values keep rising indefinitely..and if consumers keep refinancing....after each....5 - 10% rise in home value....we could keep so many mortgage brokers employed....maybe even all the unemployed could become mortgage brokers....and also keep the consumer buying indefinitely.....isn't the USA....such a wonderful country! I knew President Bush and Chairman Greenspan were smart...just never imagined how smart and clever they really are! Duh...so whatcha worrying about???? :)

To: BWAC who wrote (49373)	10/7/2003 6:51:35 PM
From: DanZ	Read Replies (1) \| Respond to of 53068

<Its always a good thing to turn/replace unsecured credit card debt with a secured mortgage on your house.> I don't think that consumers would replace unsecured credit card debt with a secured home equity loan unless they had confidence about the future of the economy, and in particular confidence about their own future. Honestly, I don't think that you are giving people enough credit for knowing what they are doing with their finances. The question is whether it is better to hold unsecured debt at 18% or secured debt at 7%. The former is better if you don't think that you can pay it back, or intend to file bankruptcy and stick the creditor with the loss. The latter is better if you believe that you will pay it back. I think that the message being sent is that consumers have confidence in their future, their jobs, etc, which is important to get the economy growing again. When people have confidence in the economy, their jobs, etc, they spend money. That creates demand, which in turn creates more jobs.