From: "Number 9" 
Newsgroups: uk.politics.misc alt.politics.bush uk.finance
Subject: Re: Six months to housing hell
Date: 7 Apr 2006 10:59:51 -0700
   posting-account=GZiWkA0AAABD82LArBsIZPt7X1mPw0-y


Tumbleweed wrote:
> "Number 9"  wrote in message
> news:1144429010.689154.111500@v46g2000cwv.googlegroups.com...
> >
> > Tumbleweed wrote:
> >> "Crowley"  wrote in message
> >> news:1144426797.447874.100340@t31g2000cwb.googlegroups.com...
> >> > MoneyWeek piece on the dire state of the US housing market, now of
> >> > bubble proportions in many, mainly coastal, areas, and responsible in
> >> > large part for a significant proportion of the US economy. What happens
> >> > if/when it bursts and isn't the situation just as dire in the UK ? ....
> >>
> >> 'dire'? Why are lower housing prices 'dire'? I'd have thought they were a
> >> good thing.
> >>
> >
> > Not when Americans have leverged them beyond reason.
>
>
> What, all of them? What proportion are 'leveraged beyond reason'?
>

That would require getting an appraisal on every house and then
comparing that to outstanding mortgage balance.

If you are trying to argue that this is not a problem, I would say you
haven't been paying attention to the news.  As a nation, we spent more
then we earned, by .5 percent.  Much of that spending was done by
borrowing money using a personal residence as collateral.

>
> >When you have
> > borrowed more then your house is worth, I would say you are in a dire
> > situation.
> >
>
> You are in a dire situation when you cant pay it back, which is different.
>

That is sensible.  More people are going to be put in this position as
their loan interest rates rise, which mose home equity loans are doing
right now.

You are in a *risky* situation when you owe more than it is worth.  I
am sure you will agree with that statement.



> --
> Tumbleweed
>
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