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Originally Posted by JJ Gold
Lots have people have borrowed money against these inflated valuations. I think we will see lots of foreclosures.
Too many idiots trading unsecured debt (credit cards) for secured debt (homes).
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no kidding. cash-out refis have been the fundamental engine behind the recent economic 'recovery'. now those people will all be so far underwater that they'll probably just walk away. but if consumer spending takes a serious nose dive and liquidity dries up, you could see
deflation which is far worse than inflation.