homeowners keep crying blue :):):)
My previous post drew several derogatory comments, for an obvious reason. What matters, though, is that none of the critics has even attempted to refute one of these numerical facts.
1. Homeowner equity, when measured in dollar amounts, is still near its historical maximum.
2. A 9.65 trillion equity can comfortably sustain HELOC withdrawals at the rate of 700 bln for 10 more years.
3. If people withdrew more cash from the system than they put into it, equity would have fallen faster than the asset base. Instead, it decreased by a lesser amount.
4. 84.1% of homeowners would be in the green if prices fell 20% from the peak.
Of course there was plenty of emotional outbursts. The emotions were representative of the cross-section of housing bears. Two people claimed that the grapes are sour, and two others responded with that standard crie de cour, "have pity on me, can't you see I REALLY need that sugar candy".