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

To: Roads End who wrote (263603)	7/23/2010 4:01:24 PM
From: Jim McMannis	Respond to of 306849

Where do you think the money was coming from to buy the cars? Flippers, HELOCs? A rising bubble floats all boats?

To: Roads End who wrote (263603)	7/23/2010 4:05:51 PM
From: neolib	Read Replies (2) \| Respond to of 306849

Auto financing screamed bloody murder but managed to live on till it crashed right along with interest deduction subsidized housing Thats because autos were still financed with tax deductions. It was called the HELOC. It allowed all consumer debt to be tax deductible, assuming the consumer "owned" a home. In fact, in the case of one of my wife's siblings, HELOC'ing the house for a couple of vehicles (Lexus SUV, Dodge RAM & camper) was likely the cause of her losing her house in foreclosure. She & her husband had a nice little racket going of remodeling and expanding their home, refinancing (cash out) each time then getting reappraised after the expansion and crowing about their ever increasing property value and how it "paid" for all their toys. Didn't crow about the debt, and eventually it caught up with them. Lexus & Camper now gone, along with the house.