Quote:
|
Originally Posted by Family Man
the economy is going to be in REAL trouble when people have to renew their mortages at higher interest rates in the comings months.
|
This is what I worry about - energy prices busting the real estate market violently, rather than bursting the bubble by 5-10 years of flat returns. Many have said the home equity credit lines are what made the gas increases tolerable. Looks like we may be hitting that limit. Heating these large homes will also get very expensive.
Buying non-necessities on credit is really a mistake. Also, how many really have the 6 months of income in accessible savings for emergencies. Most economists recommend saving 15-20% of your pretax income. The actual amount - around 2%. That's a problem for all of us in the long term.