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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (18008)	8/23/2004 9:37:55 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 110194

Another wave of home-refinancing, as mortgage rates dipped back down recently, has taken the pressure off credit card payments. Since the Reagan "tax-reform" of 1987, consumer debt has shifted dramatically away from credit cards and into additional mortgage debt. home.pacbell.net home.pacbell.net

To: Ramsey Su who wrote (18008)	8/23/2004 10:51:21 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

These credit cards are being paid from refis, and more importantly HELOCs (back door way to get people to take out ARMs): translate robbing Peter to pay Paul. Indeed HELOCs are even being marketed that way. Quoted from this link: debtconsolidationctr.com "Currently, approximately 40% of HELOCs are taken out for debt consolidation purposes. That makes debt consolidation the number one reason for taking out a HELOC. Smart consumers are quickly realizing that it is no longer necessary to maintain payments on credit card debt at 18% interest. A HELOC makes it possible to pay a much lower interest rate – thus paying your debt in a fraction of the time."