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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (48557)	3/23/2006 4:05:51 PM
From: regli	Respond to of 116555

"Could be that people are used to lower interest rates and today's higher rates turn them off." My thoughts went along a similar lines. The other thing I considered is that as there is lower appreciation or even price stagnation, refinancing doesn't result in as much cash out which the subprimers really need. As to energy, I don't think we have seen the full effects of the high oil prices yet. I believe that a lot of this exuberance is psychological and therefore rooted in the positive outlook on the housing ATM. Once that positive perception goes off, all of it will hit the consumer mood at the same time. BTW, I was rally surprised how little awareness there was in that subprime customer as to the real state of the housing market. Psychology at work... These guys liked to quote the YoY increases and until confronted directly, simply tried to ignore the MoM declines.