Mithan

Huge Decline in Mortgage Yields and Spreads Could Dispel Deflationary Gloom

Lower? Sure, probably another 20%.

However, when things pick up, it will be quick and strong.

What most economists are missing is that there will also be a HUGE upshot to all of this.

For the last 10 years, a SIGNIFICANT portion of people's income went into a mortgage. Now with homes literaly cratering, it means people buying those homes will have relatively small mortgages when compared to what they had 2 or 3 years ago.

Do you know what kind of extra spending money that puts into people's pockets when they have much smaller mortgages? It will be huge.