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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (69994)	1/7/2007 3:55:50 PM
From: Wyätt Gwyön	Respond to of 306849

i was trying to explain it in a way that even you could understand. apparently that is not possible. i can't dumb it down any more so forget it. People who have millions of dollars pay cash their their homes--no loan involved. people who have millions of dollars typically don't live in million-dollar homes or drive fancy cars. that is why they have millions of dollars. people who buy million-dollar houses are typically asset-poor, high-income earners who want to show off or who have the misfortune of living in a bubblezone. Have you ever, in your entire life, met people who put down 30 percent, up to 100 percent, of their money to buy a house? yes, i own 100% of my house, and i have met myself many times. People don't "leverage" as much as you might think. yes they do. average equity is at an all time low. that implies that leverage is at an all time high. in other words, people "leverage" more than they ever have in history, which is exactly the opposite of your hilariously wrong statement. if this is difficult to understand, don't try too hard--i wouldn't want you to hurt yourself. only thing I can agree with is your statement that real estate values might stay flat for a while i didn't say they would stay flat. i said the real values would go down. that is too difficult for you to understand.