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To: Steve Lokness who wrote (34575)	7/30/2005 3:00:18 PM
From: Tommaso	Respond to of 116555

Well, yes, that is when the biggest savings and loan bank in my area went bust. I guess when you are in the business yourself and losing money or going broke, that's what you remember. What I remember is a hardly noticeable setback for homeowners who had installed themselves for the previous three decades with 30-year mortgages and up to 50% downpayments (usually less, of course) on their original loans. They all had plenty of equity and a comfortable feeling that their houses were worth a lot more than they had paid for them. I do remember a neighbor who was heavily into real estate who began to look kind of beat down. So I think what you are talking about hit the speculative builders a lot worse than most people because they were leveraged to moderate declines or just a stagnation in prices. I think we agree that now a large percentage of the U. S. public is in fact engaged in real estate speculation, and that what involved professional real estate people in the 1980s will now bring down maybe ten times as many fortunes.