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August 2, 2006


Middle America’s New Diet

Back in late 2005 the market began anticipating that Middle America was going to start tightening its belt. Now with $3 a gallon gas and that ARM* resetting there will be even fewer Steak & Crispy Buttermilk Shrimp Combos consumed by Mr. and Mrs. Front Porch USA. (”Seven ounces of sizzling sirloin paired with succulent shrimp, lightly breaded and golden fried to perfection for only $14.99!”) As the great Leon Levy used to say, the market is “pretty efficient.”

APPB

* “The typical ARM holder will see a monthly payment increase of about 25%, while for those in option ARMs, interest only, and negative-amortization loans, the resets could approach 60%.” — Liz Ann Sonders

This entry was posted on Wednesday, August 2nd, 2006 at 10:08 am (utc+8) and is filed under Trading and Investing.

One Response to “Middle America’s New Diet”

  1. MaoXian » The End of Whole Foods’ Fabulous Run, or, Pass the Mac & Cheese Please said:
    August 10th, 2006 at 10:10 am

    […] The dramatic run that started in late 2000 in WFMI is now officially over. The market is signaling that it’s not just Mr. & Mrs. Front Porch USA who are retrenching — the ambulance chasers, rich plumbers, hippie-yuppies, and trust fund babies who patronize WFMI are also tightening their belts. […]

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