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

To: TheStockFairy who wrote (122138)	5/10/2008 6:16:35 PM
From: RockyBalboa	Respond to of 306849

Right, should be akin to lowering required margins in futures and stock markets (overall). After numerous reflation initiatives (which evidently didnt work) we have now a direct releverage event. It drives average equity in housing lower even without declining prices. Thats exactly the opposite of what the doctor ordered. A crisis can end only once equity builds up again. This is the exact opposite of the trend of allowing generally lower LTVs. I am quite sure that creative brokers will devise a way to create a new cash out refi facility from it.