Sunday, October 07, 2007

Consumer borrowing up sharply

Consumers have boosted their borrowing at the fastest pace in three months, turning increasingly to their credit cards to replace home equity loans as a source of ready cash.

Whew, good thing they aren't trying to actually save money for retirement. I'm so glad our demographics suggest a negative savings rate is ok. Why, its so 1950's to save up right before retiring. ;)

USA Today article

During the housing boom, when home sales were hitting records for five consecutive years and prices were soaring, many homeowners tapped the rising value of their homes to finance increased spending by taking out home equity lines of credit.

Sadly, J6P will need to hear this again and again before he/she believes it.


Exurban Nation noted that Hawaii hotel vacancies are up YOY. Hmmm...

To think, all that construction is past the point of no return. When we honeymooned in Hawaii, it was non-stop construction everywhere. What the heck will happen to that state's economy when we go into recession?

Good thing all real estate is local! Yea right...

Got popcorn?
Neil

3 comments:

Rob Dawg said...

I wouldn't worry too much about Hawaii. When the dollar craters the Japanese can step in for the missing mainlanders. My sister lived on Ohau for 5 years and sold for enough to buy the nicest house in Dayton outright with the profits left over after taxes on the amount great than the $500,000 exemption. Wow.

sandman said...

With a hat tip to blown mortgage, I don't think this is limited to just credit cards.

http://online.wsj.com/article/SB119162722016150793.html?mod=hpp_us_whats_news

sandman said...

Let's try that with a smaller link:

http://tinyurl.com/35h2x6