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

To: bentway who wrote (97737)	12/18/2007 4:11:16 PM
From: TheStockFairy	Read Replies (2) \| Respond to of 306849

I don't personally know of anyone that's on a household budget. The housing market is supposed to make a big dent in retail sales, but it doesn't seem that it's happening. Soooo, if this is as bad as it gets, what happens when it gets good again? Say 2008 is another terrible year for housing (which it's going to be), or it levels off at some kind of bad bottom, are people going to stop buying junk totally? After the credit market figures out how to value the crap they are selling to subprime arseholes, my guess is that they just adjust the interest rate on the mortgages to compensate for the extra risk, correct? There's always money to be lent out, it just depends on price. 25% interest mortgages on a 500 credit score? We all would at least consider it if there was a large enough portfolio of the junk to offset the deadbeats. So, my bet, if the consumer dies, the EMTs are going to revive them again withing 12 months and that's shorter than my investment horizon. I think the expression is "hold your nose and buy."