I was suprised to see this thread fall with so few comments, maybe it was covered on a different thread and my being away for a few days caused me to miss it. This is actually a pretty significant event for the local economy, this is a credit crunch where the tires meet the pavement.
In this article they highlight a local realtor who was using his house as a “payday advance.” While I think a realtor shouldn’t anticipate that the next payday will come at all and the lender is smart to cut off his supply, there are a lot of people in industries who have income that does come in chunks that will be affected. There are also a lot of industries that will see sales drying up as a result of the lack of helocs. The credit crunch was primarily contained to wall street and between financial institutions until now.
Check out the blogger comments at the bottom, it looks like the piggington way of thinking has spread to mainstream crazies and not just confined to us finance and R/E crazies.
