Bending the Third Rail
Because We Should, We Can, We Do
Tuesday, November 28, 2006
Did You Know?
The consumer represents two-thirds of the American economy. I knew that consumer spending was being fueled by using home equity as an ATM machine, but I didn't know just how much:
Cash-out refinancing never amounted to more than $50 billion in a year before 2000, his charts show, but is running at more than $75 billion a quarter so far this year.
With home prices dropping, in some places precipitiously, you gotta wonder what's gonna happen to the economy. The best estimates have a 50/50 chance of recession next year.
Blogger Lynne said...
Apparently "deferred gratification" is a foreign concept to Americans.