1 reply to this topic

[zedor]

Demand is the desire and want for something.

Real demand is when the waxing for the thing has the means to pay for it and buy it.

There is always more want than real bona fide able buyers with the resources.

That is why the real-estate bubble is going to be so ugly as it collapses. The bubble was created by lowering the threshold and rules to be able to buy. Many thus added their bids to the market that had no backing.

Think how many could buy a house under the old rules. 20% down in cash and a fully vetted mortgage application ??? Esp these 1 mill and 1.5 million bargains. 300,000 cash up front to buy ?? .

Per my previous post here comes the news on this.


A whole universe of "buyers" has been yanked from the market.

Thus demand has been cut

Supply is there but no demand.

http://www.msnbc.msn.com/id/20127274/

Say buh-bye to zero or little down mortgages. And yes Virginia this will have an impact on the stock market.

Edited by zedor, 05 August 2007 - 09:09 AM.

[traderpaul]

I often wonder if folks borrow money from their homes and usd that money to play the market......Margin debt were very high in this cycle as James pointed out right at the top......