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

To: TheStockFairy who wrote (97757)	12/18/2007 4:27:54 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 306849

I expect a long slow slide in consumer expenditures (in real terms). Ex-gasoline, of course..... Remember that resets are just getting rolling, and that cash out refis have only recently dropped. There's one more mediocre XMas and JqP's Capital one card, then it's pay back. Retail stocks have pointed the way lower for consumer spending, and it's not gonna just bounce back until salaries start keeping up with inflation and energy prices. The HELOC ATM is outta business until further notice.

To: TheStockFairy who wrote (97757)	12/18/2007 4:38:26 PM
From: bentway	Respond to of 306849

I think a lot of American's spending has been based on the outsized value of the houses we live in and HELOCs and other instruments that allowed us to tap that. With house values declining, we'll have to just live on what we make, including making those HELOC payments! Add tightened lending standards to that, and it's bound to reign in American's spending habits. I won't be forever, for sure, but it may be longer than just the next year. Chindia hasn't grown enough consumers to take up the slack. I think in 5 or 10 years, China will be paying off big time. I'm not so sure about the shorter horizon.