The housing boom created two things, (1) a huge new group of homeowners lured by lower payments (some due to low interest, some due to crazy financing schemes), and (2) more use of home equity (both to pay off other debts, or because it was a cheap way to get ready cash). Result, a stunning level of current debt, not even counting credit cards or other things that make conservatives sniff about personal responsibility. As interest rates inch upward (and/or balloon mortgages start to kick in), there's bound to be a serious pinch. That graph is amazing.
(via dailyKos)
Subscribe to:
Post Comments (Atom)
1 comment:
That's what I'm waiting for: when homes start coming up for sale because debts are too high and I can buy one for remaining cost. Yeah!
Post a Comment