Housing Mortgages Information

The Consumer Spending Problem Wall Street Doesn’t See Coming

Well there certainly are a lot of opinions in the news media out there concerning the economy, lenders, recession, etc...

Let's just apply some common sense for the moment.

Consumer spending drives the economy. But what drives consumer spending? Lot's of things, but here are my thoughts. In the last 6 years, we've had rapidly rising home values. Any of you reading this that have bought or owned homes from 2001-2006 have yourselves felt the sense of security that came from knowing you had appreciating real estate to "back you up."

To compound this confidence in real estate appreciation, the last 6 years have held unprecedented recklessness in spending. Spending is good, but reckless spending is bad...