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


To: Mike Johnston who wrote (76446)12/22/2006 2:59:50 PM
From: John Vosilla  Respond to of 110194
 
'No wonder when J6P suddenly has 100 or 200 grand sitting in his checking account courtesy of the real estate bubble.'

Yes that is (or was?) the huge multiplier effect that kept consumers spending on stuff they really didn't need. All I know is the financial institutions will encourage you to no end until you've used up much of that available equity..

One huge question rarely addressed is what happens to all the equity being unleashed on the younger generation as the 'greatest generation' dies off leaving the young ones their free and clear very valuable pad in bubble markets along the coasts. Another multiplier effect? Extreme class warfare?