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

To: jimmg who wrote (71334)	2/3/2007 1:18:52 PM
From: orkrious	Read Replies (1) \| Respond to of 306849

and yet personal net worth has skyrocketed over the past 2 years. How do you define net worth? Assets less liabilities? Please give me a link that shows net worth has skyrocketed. There are 10 charts in Contrary Investor's freebie this month that show that consumers are up to their eyeballs in debt and have no money at all. contraryinvestor.com

To: jimmg who wrote (71334)	2/3/2007 1:30:05 PM
From: ChanceIs	Read Replies (1) \| Respond to of 306849

>>>There is still a tremendous amount of buying power left.<<< "the top 1% of householders hold 30% of the assets and 7% of the debt, while the bottom 50% hold a mere 6% of assets but a burdensome 24% of the debt." Where is the buying power????? Message 23249912

To: jimmg who wrote (71334)	2/3/2007 5:14:01 PM
From: Elroy Jetson	Respond to of 306849

For a chart of "personal consumption / (income + change in personal net worth)" to make sense it would be helpful to deflate the results by basket of other currencies. During the 1982 to 1988 presidency of Miguel de la Madrid Hurtado in Mexico, the unofficial slogan of his administration on the street was, "Hacer a todos millonarios" . . . Making everyone a millionaire. I was there in 1983 when the value of my US Dollar bought ten times as much as it had before the devaluation. Retired Americans who had brought their life savings to Mexico to take advantage of the 24% interest rates were wiped out. A million US dollars in savings were now worth $85,000. Personal consumption during this period collapsed to survival level while the price of all assets exploded, well at least as measured in pesos. The rise in asset prices benefited the foreign companies who owned the assets, along with the thousand families who live in Lomas de Chipultepec. Everyone else was wiped out. But a chart of "personal consumption / (income + change in personal net worth)" during this period of time would have shown a period of unprecedented prosperity in Mexico during a time when 90% of the population was going to bed hungry. While consumption rose in peso terms, it collapsed in real terms, while asset values of everything zoomed in peso value, while declining precipitously in dollar terms. .