sure people buy a hiouse to live in it, and tax laws benefit homemoaners too boot. but when you hear stories of people with under $1,000 in lifetime savings buying homes, you are seeing the start of trouble. i'd argue that we have seen massive under-employment and disclocations w/in the labor markets. what does the real agent or mortgage whore do when they cant generate commissions? im seeing 40+ yo bag boys at the grocery store, he is employed, and although and extreme example, he is certainly under-employed. i posted before about the electrical engineer that is bouncing around jobs, and believe me she is brialliant and smoking hot. i went into my buddy's shop & an airline pilot was working for free and a software engineer, tired of getting made redundant, was working as a trainee. if you can hire, you can get good people at relatively cheap wages. overall, i agree with you on the surface, we have low unemployment and rates that allow most homemoanership. i have noted equity lines near 8% now, where they have been near 6%. CC usage is up again, as the home equity spiggots are closing. i agree with your insights, but i believe people have been living beyond their means for too long, and the bill is coming due. wait until the mass psychology is that prices are decreasing, you gonna see a country sitting on their hands. if the chinese come bargain shopping ala japan circa 1989, then we have another leg up before the rug gets pulled. i want to buy a nicer home & a 740 BMW, but i see auctions in teh future, so im waiting.