Will Subprime Effect Consumer Spending?

[synthetik]

[EconE]

[biliruben]

[S-Crow]

Yes, subprime borrowing will impact consumer spending. It impacts it the day they close. The borrower doesn't know it until they buy a Ford F-250 with $650 payment or until they refinance again 6 mos later when they realize that they are burning through cash.

Quotes of the week from a clients refinancing and employed with a major bio-tech company in Seattle and another who is in the business:

"...sucks when your stock options never materialize. I (tongue in cheek) thought we would be millionaires, but no go."

"Got to pay our IRS taxes. Shouldn't have bought that multi-family property last year."

I don't solicit these conversations, the borrowers offer these comments all on their own and all I can do is just put the poker face on and continue with their paperwork.