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

To: loantech who wrote (43585)	10/15/2005 8:44:54 PM
From: Win-Lose-Draw	Respond to of 110194

It's not just cynicism, I think. Whatever asset is being used to back the state's currency can't be allowed to freely circulate amongst the general public. With only one legitimate customer - the State - there is no pricing power for holders of the asset. It might be a bit different if we were talking about a return to gold as the physical currency itself, but that's impossible without bringing down virtually all of civilization.

To: loantech who wrote (43585)	10/17/2005 8:39:12 PM
From: russwinter	Read Replies (4) \| Respond to of 110194

From Contrary Investor, comment? What are folks doing and using? One issue that continues to perplex us at the moment is what you see below. For the life of us, we cannot figure out why refi’s are not booming at the current time. And this has nothing to do with real estate as an asset class and everything to do with personal financial planning/execution. Given that the cost of adjustable and fixed rate mortgage debt is converging in the US in a big way, why are all of those folks sitting on top of existing ARM loans not refinancing in hordes? Is it because their loans have not yet “reset” to higher levels? If so, isn't that personal financial shortsightedness like there’s no tomorrow? Or is it because they would not be able to qualify for conforming fixed rate loans at this point? Again, we just have no reasonable answer for what does seem a real conundrum. This is telling us that consumer financial stress could at some point derail what seems to be the train of accelerating inflationary pressures already barreling down the tracks of the US economy directly toward us.