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To: AZRepublican

I am assuming housing value is excluded from the savings rate. I wonder if mortgage loans are included on the debt side.


2 posted on 02/01/2006 6:07:01 AM PST by frankjr
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To: frankjr

Unrealized capital gains in houses, IRA's, 401K's, etc. are not included in the savings rate. Money you put into IRA's and 401K's is included.

But there hasn't been much gain in IRA's and 401K's this past calendar year, if you have it in the usual kinds of plans.

As regards housing though, it is now a moot point whether it is counted as savings or not. The value of your house is done going up at more than a couple of percent per year for the next couple of years. In many of the bubble areas, it's already down 5-10%, and many other areas will be starting that long road down soon as well. The housing ATM is closed.


9 posted on 02/01/2006 6:14:40 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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