On Thu, Jan 15, 2009 at 9:10 AM, Doug Henwood <[email protected]> wrote: > > On Jan 15, 2009, at 10:56 AM, Jim Devine wrote: > >> In this "mark to market" world, I can use the equity on >> my (allegedly) $1 million house as collateral to get new loans. > > and > >> it's not a matter of cash flow. It's the ability to use home equity as >> collateral (as "an ATM," as one famous economist put it). Having a >> valuable house increases one's reputation and creditworthiness. > > Aren't these just different ways of saying what I'd already said? Wealth > means little if you can't turn it into cash. The cash is where the action > is, and the asset just an enabling mechanism. So studies of the effects of > housing wealth on consumption are looking at an imperfect proxy for > something, not the thing itself.
then we agree. (is that allowed on pen-l?) -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
