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

To: John Vosilla who wrote (74182)	11/16/2006 2:42:48 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Most are ahead? How so? Let me seem them cash out. Even if they can cash out unless they decide to move someplace cheaper or rent the next home will cost as much. If everyone decides to cash out who will the buyers be? Only a small %age can actually "cash out". Thus wealth in homes is more or less a mirage and a "repricing" stage has begun. What is not a mirage is rising property taxes, rising insurance, etc. People only think they are wealthy. Worse yet people are spending money that really isn't there by taking cash out of their homes. The average Joe is NOT so far ahead of the game it is not even funny and that holds true whether the house is appraised at 85K or 400K. A negative savings rate for 15 consecutive months is proof enough as are rising inventories of people trying to cash out. Imagine what those inventories would be like if even 15% of the general population tried to cash out and collect on what you presume they are "ahead on". What I am saying is not sensationalism it is a simple fact. Mish