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To: GraceZ who wrote (12687)	10/2/2004 8:25:22 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 116555

It's quite imaginative of you to suggest that the recent massive "Equity Extraction by Home Owners" has been caused by low interest rates. It's unfortunate that the facts don't fit this story. It sure was a good attempt, though. Here is a chart showing the steady decline in Mortgage Rates from 1982 to the current day. home.pacbell.net By contrast, the chart of "Equity Extraction by Home Owners" shows a precipitous increase only since 2001 to the current day. home.pacbell.net Clearly, declining interest rates are not the explanation for this massive move by consumers in recent years to eat their homes in a desperate attempt to maintain their lifestyles.

To: GraceZ who wrote (12687)	10/3/2004 9:27:06 PM
From: ThirdEye	Respond to of 116555

I have people approach me all the time with the idea of borrowing out of their house for purposes of investment since one can invest with a reasonable amount of risk in some vehicle that pays 10% while borrowing at 5%, to them it seems like a no brainer. If you want to think of this kind of activity as "eating the house" then go ahead. I think of it as "betting the farm" and usually talk them out of it. Hey, how else can a consumer feel equal to a bank than a carry trade? <g>