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

To: ild who wrote (35925)	7/13/2005 7:46:52 PM
From: russwinter	Respond to of 110194

<Whoever bought a house in CA two years ago sits on at least 40% equity now.> I'm seeing one year appreciation numbers (in Calf) of about 8-10% now and through May (June and July looks worse), see Dataquick in the news right column: dqnews.com and about 25% for the previous year,so entirely depends exactly when they bought. A bunch of it occurred with subprime in early 04, they missed the big appreciation because they fueled it. Besides how many of these people have just sat on their "equity"? To begin with many set up piggyback loans over the equity, or are already negatively amortizing IOs or refied ARMs as the six month and one year teasers come off. I think many have already had a big friggin' party and have spent most of it, and are all levered up. Equity, what equity, just increasingly larger payments?