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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Eggolas Moria who wrote (48950)	2/25/1999 7:32:00 PM
From: Merritt	Read Replies (1) \| Respond to of 132070

GG: My thinking is that anecdotal evidence indicates that a fair amount of the market's liquidity has come from people refinancing, or selling, their homes and putting the excess money into stocks/mutual funds. If there's a strong contraction in the market, then there'll be a lot of properties coming on the market as people scramble to cover their margin calls. A market tumble will also cause consumer spending to slow, which will result in more layoffs, putting more strains on the housing/real estate market. Not the scope of Japan's bubble (which their banks have yet to mark to market), but almost certainly a contraction in real estate values. IOW, the real estate value contraction could come as a result of #'s 5 & 6.