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Non-Tech : Deflation -- Ignore unavailable to you. Want to Upgrade?

To: JF Quinnelly who wrote (396)	1/2/2008 12:37:02 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 621

I guess as elections and financial carnage become more intense, some will start saying "Price freeze, interest rate holiday, cash grants to the stricken, etc..." Election bribes are standard in democracies. Deflation must be under way now = as determined by house prices. But Big Ben hasn't got the helicopters launched, so it's not a slam dunk. I wonder what Big Bad News there will be in 2008. There is bound to be some real nasty stuff and probabilistically, it could be up close and personal. I have my fingers crossed. Three years ago, a friend and I were discussing that, and how despite the knowledge, we cheerfully launch into the next year and all the things that happen. By the end of the year he was a partial tetraplegic with constant need for high levels of pain relief. Mqurice

To: JF Quinnelly who wrote (396)	1/5/2008 9:40:05 AM
From: Ilaine	Read Replies (2) \| Respond to of 621

I am very surprised at how lenders have been shooting themselves in the foot with these ARMs. I have many clients whose mortgages simply doubled overnight, ridiculously, e.g., from $2,500 a month to $5,000. These are people with modest incomes, they can't afford it, and then the lenders foreclose, but nobody buys the properties, so the bank buys them, and they sit vacant, depreciating. Seems much saner to keep the ARM payments low and have a steady income stream.