Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John McCarthy who wrote (68713)	8/24/2006 12:56:19 AM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Housing Nostalgia and the Economy howestreet.com Mish

To: John McCarthy who wrote (68713)	8/24/2006 11:08:24 AM
From: Tommaso	Read Replies (2) \| Respond to of 110194

I have not see the exact figures lately, but I think that something like 40% of U. S. families own their homes free and clear. Another very large percentage have plenty of equity and are paying down their mortgages on or ahead of schedule. However, there certainly is a large segment of "Mr. and Mrs. America" that are going to be "Mr. and Mrs. Non-Homeowner" pretty soon, and in some cases they will be "Mr. and Mrs. Deeply-in-Debt" or "Mr. and Mrs. Bankrupt." At some point this should provide quite an opportunity for "Mr.and Mrs. Well-Heeled" to become "Mr. and Mrs. Owners-of Multiple-Properties." In the Great Depression, I believe, a lot of properties eneded up belonging to banks and insurance companies who had to work them off over the next 10-15 years, keeping prices from rising very fast even as prosperity returned after WW II. I can't imagine what will happen this time.