Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Buzz & Banter



Kevin's highlight of the front page Sunday NYT's article re: mortgage refi's is as important an observation as has been made on this site (and I wish I had made it). And that's saying a lot given the extraordinary number of insights the other contributors have made in their articles of late.

I have, perhaps to a fault, concentrated my commentary on the economic health of the US consumer, owing to the fact that it is the US consumer that is, well, the world's consumer of last resort. His ability to keep on spending is what, literally, is propping up much of the economic growth we are seeing.

I don't want to make too much out of one data point, but the example that Kevin highlighted speaks volumes and, in any case, is not limited in nature, as a perusal of any number of statistics from the mortgage industry can attest. This example is hardly unique. That the US consumer is levering up in order to maintain or in some cases increase discretionary consumption expenditures (if a new Dodge Dakota isn't discretionary, I don't know what is), should give anyone attuned to risk a chill.

That a piper must be paid for such leverage, for such beyond-means spending, is a truism to which much of financial history can testify.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The informatio= n on this website solely reflects the analysis of or opinion about the perf= ormance of securities and financial markets by the writers whose articles a= ppear on the site. The views expressed by the writers are not necessarily t= he views of Minyanville Media, Inc. or members of its management. Nothing c= ontained on the website is intended to constitute a recommendation or advic= e addressed to an individual investor or category of investors to purchase,= sell or hold any security, or to take any action with respect to the prosp= ective movement of the securities markets or to solicit the purchase or sal= e of any security. Any investment decisions must be made by the reader eith= er individually or in consultation with his or her investment professional.= Minyanville writers and staff may trade or hold positions in securities th= at are discussed in articles appearing on the website. Writers of articles = are required to disclose whether they have a position in any stock or fund = discussed in an article, but are not permitted to disclose the size or dire= ction of the position. Nothing on this website is intended to solicit busin= ess of any kind for a writer's business or fund. Minyanville management= and staff as well as contributing writers will not respond to emails or ot= her communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.<= /p>

Featured Videos