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

To: GraceZ who wrote (31599)	5/19/2005 8:02:37 PM
From: anachronist	Read Replies (1) \| Respond to of 306849

What everyone forgets here over and over is that for the most part people used the lower interest rates not to fuel new spending (except on houses and improvements) but to refinance old spending. Got any numbers to back that up? I recall reading something in the Wall Street Journal this week that stated that Americans have been spending more than their personal income (i.e. dissaving) since 2000. That would indicate that they are not refinancing old debt, but in fact are using new debt to over-consume.