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

To: GraceZ who wrote (54443)	2/21/2006 10:25:17 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

When people go on about median incomes not keeping up with median house prices they aren't accounting for the fact that people can and do buy houses with inter-generational wealth, not just income. No where is the wealth transfer that is now occurring between the Boomers parents and the Boomers accounted for in income statistics. So what? Does stupidity make it a good deal? Mish

To: GraceZ who wrote (54443)	2/21/2006 10:57:42 PM
From: Fiscally Conservative	Read Replies (2) \| Respond to of 110194

How much of that wealth transfer is tied to home equity? Given that a home must first be sold before the equity can be redistributed to offspring and then those who buy then become new debt holders thus offsetting any wealth transfer effect. Without data that would correlate the potential wealth effect from inheritance against the overall debt to equity ratio in the housing market as being positive in nature one can not assume anything.