To: Mears
but the doom & gloomers worst case scenarios are dependent upon folks cashing out all their equity, throwing the cash in the street & then extending their debt back 30 years into the future. if people are, in fact, decreasing the terms of their mortgages (as many are) and paying them off quicker than expected, with more money going towards the principal and less towards interest, with the difference being used by the homeowners to increase their quality of life on a monthly basis, with that money going back into the economy, those are all tremendously good things that will have the doom & gloomers once again short covering & crying amidst their increasingly tremendous losses.
3 posted on
06/02/2003 4:32:07 PM PDT by
Steven W.
To: Steven W.
All my refinances in the past 15 years have been with 15-year mortgages which I've thrown an extra $50-$100 at per month. But my children are in college now so I've been drawing down equity for the past two years - my home is pretty much my bank.
My wife wants to have a party when our first child graduates from college.
7 posted on
06/02/2003 4:39:44 PM PDT by
Thud
To: Steven W.
This is a seismic shift. People may have borrowed all they care to and are coming back to earth. Also, if deflation is coming, people would want to get out of debt sooner rather than later. Make any sense?
11 posted on
06/02/2003 4:45:06 PM PDT by
RightWhale
(gazing at shadows)
To: Steven W.
bump
the doom & gloomers worst case scenarios are dependent upon folks cashing out all their equity, throwing the cash in the street & then extending their debt back 30 years into the future.
192 posted on
06/03/2003 7:50:44 AM PDT by
GOPJ
To: Steven W.
but the doom & gloomers worst case scenarios are dependent upon folks cashing out all their equity, throwing the cash in the street & then extending their debt back 30 years into the future. This Gloomster sez:
</booming voice on>
This will hurt the the thinly capitalized GSEs who hold more debt than the publicly held Treasury debt!
Should they destabilize their counterparties will experience contagion via their 1 trillion dollar derivatives portfolio.
GLOOM ! DOOM ! BOGETY BOGETY BOGETY....MUHAHHAHAHHAHA
193 posted on
06/03/2003 9:28:53 AM PDT by
AdamSelene235
(Like all the jolly good fellows, I drink my whiskey clear....)
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