Ridgeway

Housing Update: Underwater Loans, O'Neil's Plans

O'Neil is not that far of point. Having skin in the game is not unreasonable when it comes to making an investment - I do still believe that a house is an investment. (Investing on margin typically requires roughly 50% in.) 20% down, along with other considerations, seems to me to be a good underwriting practice, something lenders and underwriters have gotten away from during the housing boom. And actually a situation has added to the severity of the current housing crises.

I do not disagree with the reference one out of three houses are owned free and clear, but where did this stat come from?

Consumer Spending: Cut Through Unemployment

I would only add that, in addition to low unemployment, the wealth effect (driven primarily by home values) was a significant factor in the continued spending during the (short) 2001 recession, something we should clearly not expect this time around.