While the memory of a financial market participant can be measured in nanoseconds, it appears that the average American has also become goldfish-like as RealtyTrac reports [10]a total of 797,865 home equity lines of credit were originated nationwide, up 20.6% from a year ago and the highest level since 2008.
[11]
As Jim Quinn so eloquently notes, [12] after a two year Wall-Street-engineered fraudulent boost in home prices in the exact markets that led the bubble in 2003 through 2007, the delusional dolts are now acting like the increase in home equity is real:
Metro areas with the biggest year-over-year increase in HELOC originations were Riverside-San Bernardino in Southern California (87.7% increase), Las Vegas (85.1% increase), Cincinnati (81.0% increase), Sacramento (65.1% increase), and Phoenix (60.1% increase).
[13]
RealtyTrac's Blomquist exudes:
"this recent rise in HELOC originations indicates that an increasing number of homeowners are gaining confidence in the strength of the housing recovery."
Here we go again. After a two year Wall Street engineered fraudulent boost in home prices in the exact markets that led the bubble in 2003 through 2007, the delusional dolts are now acting like the increase in home equity is real.
Do delusional idiots congregate in California, Nevada, Florida, Arizona and Ohio for a reason? The morons in these markets are ramping up new home equity lines of credit at a 60% to 90% pace over the prior year.
It’s as if the lesson of the previous bubble was completely forgotten in a couple years.
Are these people really that dumb? The housing market started rolling over six months ago. Prices peaked, new single family home sales peaked, existing home sales peaked and the Wall Street investors are exiting stage left.
Now the very same Wall Street hucksters want you to borrow against the artificially inflated value of your house and spend that money on more shit you don’t need, or to lease a brand new Escalade.
It’s called the American Way. So it goes.
