5/18 I find this amusing, after all the housing bubble talk on the motd:
http://biz.yahoo.com/edu/qc?n=5486
\_ Well if 70% of the people think the market will go up, then they
will make it true (by re-investing in it).
\_ That's not "70% of people in the market". That's 70% of people.
As it continues to grow faster than wages or inflation, fewer
people can enter the market, so the positive reinforcement of
this belief is ... limited.
\_ In addition, interest rates are already rising and will
continue to do so. A two point increase is big when
you've leveraged $600,000 over 30 years. Rates have
been as high as what, 12-15% in the past. There is nothing
that says rates will not rise to that in the future.
With record number of people utilizing AMR and doing a 100%
mortgage with options to pay interest only it's a wonder
if people will ever actually ever own the home they bought...
\_ bubble investing! It feels like late 1999's stock market!
Where's Greenspan's new "Irrational Exuberance" quota?
\_ according to today's wsj, a recent survey shows that 17% of
new mortgages these days are interest-only, and 60+% are ARMs. |
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