I liked this sentence from the initial post: It is no surprise that the couples that needed the equity in their home to qualify said yes and the rest said no.
This is addressed somewhat in the KPBS thread, when interviewing Case. Apparently, when home values rise, people spend more money. We are all aware of this on Piggington, but what I didn’t know was that when values are on their way down, spending does not diminish.
So, I guess I answered my own question in the Fashion Valley thread: people are spending because psychologically they still think they are wealthy. And to some extent they are. I mean, the worst is yet to come, no?
