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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 (57371)	4/4/2006 1:45:59 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

To believe that people are simply borrowing endlessly without paying it back to maintain lifestyles beyond what they can afford you'd have to make the argument that most American families are basically insolvent. This isn't true, a very small percentage are. I believe you mean to say it isn't true YET. The home equity extraction to support consumption in conjunction with a negative savings rate has to be 4 or more standard deviations above the norm. If housing slides after that extraction and people lose their jobs (both highly likely IMO), then I do not know about "majority" but huges percentages of the population will be in deep shit with no means of paying it all back EVER. Mish

To: GraceZ who wrote (57371)	4/4/2006 11:35:07 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

"Many Americans are technically bankrupt the day they graduate from college (student loans and few assets) or when they take out that first car loan but they are usually in the plus column net worthwise by their mid 30s and certainly by their fifties and sixties" I doubt that happens in bubble markets this time Grace. Didn't you here how many males into their mid 30's still live at home with their parents these days? It is getting to be as bad as Italy<g>