yes, and this was in incidental references in other stories. For
instance, housing prices in Santa Fe are increasing because
Californians consider it a bargain, however, all of those housing
prices in CA and SF are mortgaged, and the real estate section
recommends staying away from Santa Fe as the resale value is not
there.

On 8/29/05, Gruss Gott <[EMAIL PROTECTED]> wrote:
> > Dana wrote:
> > actually I have seen a number of newspaper articles in the last
> > several days expressing concern over the amount of consumer and
> > mortgage debt out there.
> 
> Well for us conservative folks, you hit it square.  The theory is
> this: the economy over the last few years has been propped up by
> mortgage debt and cheap Asian goods.  Those days may be over however:
> 
> 1.) Upper bracket housing prices have stagnated this summer which
> could spell the end of the housing ATM machine for consumers.
> 
> 2.) China is floating its currency.
> 
> 3.) Interest rates are bound to rise.  (historically, but not yet.  Weird.)
> 
> 4.) All of the "good money" has been lent - it's the sub-prime and
> riskier money that's left.
> 
> The conservative read is that consumer spending will start to trickle
> down and there won't be much to take it's place.
> 
> Those mortgaged-out consumers will all of sudden realize they can't
> re-fi anymore and will start feeling poor.  At the same time prices
> will begin to rise and, with low demand, businesses will feel the need
> to hang on to cash.
> 
> Just as that's really picking up steam the Medicare, Medicaid, and SS
> debts will require a tax increase or a service decrease, squeezing
> consumer ever more.
> 
> And then there's the threat of a sudden dollar devaluation due to the
> twin deficits.
> 
> Or.  Maybe Mr. Bush is right and deficit pork spending is the key to wealth
> 
> 

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