The deleveraging of PMI(mannfm11)

The truth of the matter is the trend in real estate that caughtpeople's attention was put in action by the advent of PMI in the early1970's and since then the innovations have perpetuated the trend ofmore and more qualified buyers. If you check home prices prior to 1970,you will find that most equity was acquired by payment of principal,notappreciation. I would venture after the removal of the gold backing forthe dollar, most inflation has been derived from a continually bubblingmortgage market. This has been the machine that has allowed Americansto go on spending more than they made, as easier financing created moreand more equity. The deleveraging of this phenomenon isn't going to beeasy on the American or world economies.