Something sort of FYI on this subject
Although the housing/mortgage market issues are frightening, I recently heard data from the Mortgage Bankers Association and a former memeber of the Federal reserve,(who has written a critque of the sub prime mortgage lending industry)which was particularly enlightening. While lots of the rhetoric says that the subprime market was fueled by low income otherwise unqualified (and minority)first time homebuyers, these two separate sources agree that less than 10% of the sub prime loans were to first time homebuyers and thier defalut rate was much less than the larger portion of the sub prime market consisting of investors and home equity borrowers who already owned their homes.

Two lessons:
1. getting into home ownership is still a good idea and should continue to be supported and
2. when you own your home, speculating with your "paper equity" may not be worth the risk;
2.1 neither is consolidating, especially if your consumer spending/consumer debt issues remain unresolved.

These findings and precautionary caveats might be worth some additonal research and discussion by your economics pundits.

Sent by James from Miami | 10:38 PM ET | 08-17-2007

I think this subject definitely needs more discussion.
Housing Doom.com

Sent by BlackinUSA | 5:03 PM ET | 08-22-2007